Govt urged to stabilise exchange rate

Rupee’s weakness would further increase the debt level, ICCI President said

ISLAMABAD: The Islamabad Chamber of Commerce and Industry (ICCI) has expressed concern over a sharp depreciation of the rupee against the US dollar, fearing it will cause a manifold increase in foreign debt, enhance cost of production and unleash a new wave of inflation. It called on the State Bank and the caretaker government to take immediate remedial measures to end volatility and bring stability in the currency’s value. In a statement, ICCI President Sheikh Amir Waheed said Pakistan was already overburdened with foreign debt and the rupee’s weakness would further increase the debt level as depreciation of Rs1 caused an increase of almost Rs60 billion in the public debt. He pointed out that a rise in inflation due to the depreciation would curtail purchasing power of the people, leading to a further slump in business activities as growth of trade and industry depended on purchasing power of the general public.

Published in The Express Tribune, June 20^th, 2018.

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