Lahore - Pakistan Industrial and Traders Associations Front (PIAF) former chairman Irfan Iqbal Sheih has urged the government to take action against the shortage of dollar in local market, besides controlling surge of dollar against rupee.

He said the local currency depreciation has inflicted heavy losses on the national economy. He said the widening current account deficit, excessive government borrowing, absence of foreign flows and lack of foreign investments, are the vital reasons for constant depreciation of Pak rupee.

He expressed surprise over sudden appreciation of dollar in spite of smooth flow of remittances.

The PIAF former chairman asked the finance minister to direct the Federal Investigation Authority (FIA), Intelligence Bureau, Customs Intelligence and the State Bank of Pakistan to keep strict vigilance to control currency and bullion smuggling. He urged the SBP to immediately take notice of the situation which is causing panic in the currency market.

He demanded a high-level probe into massive devaluation of rupee by over 36 percent during last one year. He also demanded the State Bank to identify the reasons and share the findings with the business community.

Irfan Iqbal was of the view that the sharp downfall in the rupee value had not only disturbed almost all sectors of the economy but also brought a new wave of price spiral that would not die down despite dollar's retreat.

"Eight rupee increase in dollar price in a single day was an unusual phenomenon for a country like Pakistan as the mafia involved in this affair made billions of rupees in a single day while on the other hand those who bought the greenback to fulfil their foreign commitments suffered a great loss" he added.