- The Multinational Software Development Firm Darvis converted salaries into US dollars after the rising rate of inflation to support employees in Pakistan
By Arif Hussain
Pakistan has faced numerous economic challenges over the years, and one of the most pressing issues it has had to deal with is currency devaluation and high inflation. The devaluation occurs when the value of a country’s currency decreases in relation to other currencies. High inflation, on the other hand, refers to an increase in the general price level of goods and services in an economy.
The devaluation of the Pakistani Rupee (PKR) has been a major concern for the country, with the currency losing over 50% of its value against the US Dollar (USD) since 2017. This has had a significant impact on the economy, as many businesses and individuals who rely on imports or exports have faced increased costs and reduced profits.
One of the main ways in which high inflation affects IT Company employees is through their salaries. Many IT Companies pay their employees in Pakistani rupees, which means that the value of their salaries decreases as the value of the rupee decreases relative to other currencies such as the US dollar. This can lead to reduced purchasing power for employees, making it harder for them to make ends meet and save for the future.
To address these challenges, some IT companies in Pakistan have taken steps to support their employees. For example, some companies have started paying their employees in USD in order to provide greater financial stability and security.
Darvis, a US-based Software Development Firm headquartered in Nashville, and also having Global Offices in Germany, UK, Pakistan & Poland, has converted salaries of its Pakistani employees into US dollars after the rising rate of inflation to support employees in the South Asian Country.
The Company’s Country Manager in Pakistan Salman Hijazi was quoted as saying that the decision to convert salaries into US dollars was “a way to ensure that our employees can maintain their standard of living and provide for their families, despite the challenges of rising inflation and economic uncertainty.”
The decision to convert salaries into USD has been met with positive feedback from employees, who appreciate the Company’s efforts to support them during a difficult time.
“I really appreciate the decision made by Darvis to convert salaries into USD dollars,” says Muhammad Arslan Safdar, Software Developer at the Company. “It has helped to reduce the financial stress and has given us a sense of financial security.”
According to company officials, this decision was driven by a desire to support employees and provide greater financial security during a period of economic uncertainty. We’re proud that we are the first one to act in our industry. I wish all the employers in Pakistan will follow our example.
The writer Arif Hussain is Frontend Team Lead at Darvis and can be approached at LinkedIn.