ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Sunday expressed concerns over the sudden erosion in the exchange rate and termed it against the national interests and unacceptable.
The local currency has nosedived after remaining stable for three and a half years and now a US dollar is being sold close to Rs 107.25 in the open market which has created uncertainty, it said
Regional Chairman FPCCI on Horticulture Exports, Ahmad Jawad on Sunday asked the government to take immediate steps to stabilize the exchange rate and take action against the elements who are trying to exploit the current politically uncertain environment”.
He said that fall of the rupee will not improve exports and it will not help authorities tackle record trade deficit. He said that export policy should be adjusted to improve export competitiveness leaving exchange rate unchanged as it will damage masses by making imports costly and stoking inflation.
Jawad said that the uncertainty has hit importers and exporters and masses while many currency dealers exploiting the situation which calls for intervention by authorities. Masses should not be made to pay the price for wrong economic decisions and failure of the export sector, he demanded.
“Our export sector has lost competitiveness due to lack of support and it is addicted to subsidies, tax breaks, bailouts, and currency devaluation” he observed.
He predicted the situation will lead the government to borrow more to stabilize forex reserves which will be economic suicide.
Jawad also mentioned the economic situation of the government would be remained unchanged despite court order and country is continue with economic progress as CPEC is on that stage where it will unfold its dividends for the people of Pakistan.
Published in Daily Times, July 31st , 2017.
