‘Rupee fall detrimental during IMF negotiations’

Businessmen say free floating currency denting economy

KARACHI:

The rise in the value of the US dollar, at a time when Pakistan and the International Monetary Fund (IMF) are involved in negotiations, will have a detrimental effect on the economy, said Korangi Association of Trade and Industrial (KATI) Acting President Farrukh Qandhari.

While expressing concern over the rise in the value of the dollar following a brief respite, Qandhari urged Prime Minister Shahbaz Sharif to use his influence to cooperate with friendly countries in a bid to strengthen the Pakistani rupee and increase the country’s foreign exchange reserves.

“Following the advent of the new government, the dollar depreciated by Rs8-9, but after few days it increased again to Rs4,” he said in a statement on Friday. 

Qandhari lamented that leaving the dollar on the free float mode in the market was causing irreparable damage to the economy.

Pakistan’s currency is considered one of the worst in the world, he added.

The KATI acting president asked the government to immediately end the free floating of the dollar in the currency market and persuade the IMF to relax the conditions imposed on Pakistan’s foreign exchange segment.

He highlighted that the recent fall in the value of the dollar had reduced the debt burden by Rs800 billion, which was increasing again.

“The improvement in the political landscape and the economy is essential to stabilise the value of the dollar,” he added.

He appealed to the prime minister to immediately stop the appreciation of the dollar so that Pakistan would not face further economic difficulties.

Published in The Express Tribune, April 23^rd, 2022.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.