Volatility: Industrialists express concern over rupee’s freefall

Fall in rupee against USD will create problems for businesses and industries

ISLAMABAD: The Islamabad Chamber of Commerce and Industry (ICCI) has expressed great concern over the sharp fall in the rupee’s value against the US dollar as it will trigger a new wave of inflation and create more problems for business and industrial activities in the country.

“The rupee dropped from Rs110 to a dollar to Rs115 in a single day which should be a cause for great concern for the policymakers,” remarked ICCI President Sheikh Amir Waheed in a statement.

He said the rupee had weakened by about 5% in December last year in a similar fashion and another depreciation of over 4.5% in a single day would create new challenges for the economy.

Waheed suggested that instead of withdrawing support for the rupee, the State Bank of Pakistan should make efforts for a stable currency as volatility was disrupting efforts of the private sector for long-term business planning.

“Falling value of the rupee will increase debt burden on the country; depreciation of one rupee causes a jump of Rs60 billion in the public debt burden.”

Published in The Express Tribune, March 22^nd, 2018.

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