Businessmen fear rupee’s slide will stoke up inflation, hurt economy
Ask govt to intervene immediately and arrest the currency’s free fall
We fear that the rupee may fall further in coming months keeping in view Pakistan’s dwindling foreign exchange reserves, KCCI president. PHOTO:ONLINE
KARACHI:
The business community has lashed out at the government over the sharp rupee depreciation against the US dollar, fearing it will stoke up inflation and halt economic growth by hurting all important sectors.
They were also dismayed at rising prices of essential goods and utilities, which were going to enhance the cost of doing business and hurt the common man.
In historic drop, rupee weakens 7.54% against US dollar
In a statement, the Lahore Chamber of Commerce and Industry (LCCI) urged the government to direct the Ministry of Finance and State Bank of Pakistan (SBP) to intervene immediately to arrest the rupee’s slide.
LCCI President Almas Hyder asked the government to begin consultation with the stakeholders as the rise in dollar’s value would spoil trade and economic activities besides hitting the common man.
“The high dollar value will lead to an increase in import cost and hike in petroleum product prices,” he said. “The surge in the greenback will jack up input cost.”
Hyder cautioned that it seemed the windfall for exporters would not last long as the countries competing with Pakistan were also letting their currencies weaken and “we must maintain our competitiveness”.
Separately, Karachi Chamber of Commerce and Industry (KCCI) President Junaid Esmail Makda was of the view that the rupee plunged against the dollar in response to the government’s decision to rush towards the IMF.
“We fear that the rupee may fall further in coming months keeping in view Pakistan’s dwindling foreign exchange reserves,” he said. “Such abrupt devaluation brings economic distress which lasts for several years.”
Currency depreciation for a country like Pakistan would have negative implications for the economy in the long run, he said.
Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Ghazanfar Bilour, in a statement, lamented that people’s expectations from the current government were fading swiftly and the expected relief for the poor was nowhere in sight.
IMF suggests higher interest rate, rupee depreciation
“The depreciation of the rupee will lead to a massive hike in prices, especially those of petroleum products and imported raw material,” he said. “This will seriously affect the overall economy and the already distressed exports.”
He demanded that the government ensure stability in economic policy and clear its uncertain stance on many issues, which was seriously affecting the country’s economy.
Published in The Express Tribune, October 10th, 2018.
The business community has lashed out at the government over the sharp rupee depreciation against the US dollar, fearing it will stoke up inflation and halt economic growth by hurting all important sectors.
They were also dismayed at rising prices of essential goods and utilities, which were going to enhance the cost of doing business and hurt the common man.
In historic drop, rupee weakens 7.54% against US dollar
In a statement, the Lahore Chamber of Commerce and Industry (LCCI) urged the government to direct the Ministry of Finance and State Bank of Pakistan (SBP) to intervene immediately to arrest the rupee’s slide.
LCCI President Almas Hyder asked the government to begin consultation with the stakeholders as the rise in dollar’s value would spoil trade and economic activities besides hitting the common man.
“The high dollar value will lead to an increase in import cost and hike in petroleum product prices,” he said. “The surge in the greenback will jack up input cost.”
Hyder cautioned that it seemed the windfall for exporters would not last long as the countries competing with Pakistan were also letting their currencies weaken and “we must maintain our competitiveness”.
Separately, Karachi Chamber of Commerce and Industry (KCCI) President Junaid Esmail Makda was of the view that the rupee plunged against the dollar in response to the government’s decision to rush towards the IMF.
“We fear that the rupee may fall further in coming months keeping in view Pakistan’s dwindling foreign exchange reserves,” he said. “Such abrupt devaluation brings economic distress which lasts for several years.”
Currency depreciation for a country like Pakistan would have negative implications for the economy in the long run, he said.
Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Ghazanfar Bilour, in a statement, lamented that people’s expectations from the current government were fading swiftly and the expected relief for the poor was nowhere in sight.
IMF suggests higher interest rate, rupee depreciation
“The depreciation of the rupee will lead to a massive hike in prices, especially those of petroleum products and imported raw material,” he said. “This will seriously affect the overall economy and the already distressed exports.”
He demanded that the government ensure stability in economic policy and clear its uncertain stance on many issues, which was seriously affecting the country’s economy.
Published in The Express Tribune, October 10th, 2018.