Falling rupee worries businessmen

Traders say currency depreciation has increased cost of doing business, inflation

ISLAMABAD:

The business community has said that the weakening of the Pakistani rupee is disturbing their business plans and has urged the government to take urgent measures to stabilise the currency.

In a statement on Monday, Islamabad Chamber of Commerce and Industry (ICCI) President Muhammad Shakeel Munir said that rupee depreciation had hiked the cost of doing business for traders and increased inflation for the common man.

Fitch has projected the rupee to devalue to 180 per dollar in 2022, which should be a cause of concern for policymakers, he pointed out.

“The government has also increased prices of petroleum products to their highest level in history,” he lamented.

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“It will further jack up production cost, affect exports and trigger a fresh wave of inflation.”

He suggested that the government should reduce taxes on petroleum products to provide relief to the business community and the general public instead of pushing up prices.

Last week, Munir pointed out that the rupee was depreciating at a fast pace, which had sparked concern among businessmen.

He stressed the need for urgent intervention to arrest the slide of the local currency. Apart from that, “the government has already increased the price of liquefied petroleum gas,” he said.

The ICCI chief emphasised that the government should focus on promoting ease of doing business and reducing prices of electricity to create an environment conducive for the growth of business activities.