Govt urged to curb dollar outflow

Businessmen say widening exchange rate gap denting competitiveness

LAHORE:

Businessmen have urged the government to control dollar flight besides bridging the gap between inter-bank and open market exchange rates.

“A widening divide between inter-bank and open market dollar rates and an uncontrolled dollar flight are posing a new challenge to the trade, industry and economy,” said Lahore Chamber of Commerce and Industry (LCCI) President Kashif Anwar in a statement.

While calling it an alarming exchange rate gap, he stressed that it was causing significant economic repercussions and adversely affecting the competitiveness of various sectors. Besides, the flow of “remittances into Pakistan exhibited a decline of more than $4 billion in the financial year 2022-23.”

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Anwar said that Pakistan’s economy was facing numerous challenges but exchange rate stability could play a pivotal role in ensuring economic growth and restoring investor confidence.

Citing examples of regional economies, the LCCI chief said that the difference between inter-bank and open market dollar rates in India was INR 0.13252, in Bangladesh, it was 0.25 taka and in the UAE it was AED 0.0006. However, the difference in Pakistan was significantly high at Rs24.04.

Published in The Express Tribune, September 3^rd, 2023.

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