LAHORE - The Lahore Chamber of Commerce and Industry has demanded of the government to come up with an economic plan as fast depleting foreign exchange reserves coupled with falling rupee value and widening current account deficit have shaken the confidence of the business community. In a statement issued on Thursday, the LCCI President Mohammad Ali Mian said that foreign exchange reserves had gone down to $8.91 billion while rupee value is touching the historic low at Rs 77.60 versus dollar and the current account deficit widened by $2.5 billion during July-August mainly due to slow down in exports and rising trade deficit besides slow foreign inflows. The LCCI President said that the situation is very alarming and to restore the confidence of the business-doing people it has become absolutely necessary for the government to announce its economic plan as early as possible. Mohammad Ali Mian said that the economic plan should be prepared in consultation with the stake-holders as in the absence business community input, the plan would not give desired results as had happened in the past. Mohammad Ali Mian said that the fast falling rupee prices had not only worsened the balance of payment position but had also raised the burden of Pakistan's foreign debt and debt service liability. It would, he said, upset all the cost-price relationships in the economy, lead to galloping inflation, and would stall many ongoing projects due to rising costs. Mohammad Ali Mian said that industries are heavily dependent on imported raw materials for industrial goods and capital goods and components, and the cut in rupee value would raise industrial costs and reduce the intensity of capacity utilisation. The LCCI President said that persistent decline in rupee would cause a contraction in economic activity and consequential slide down in income tax receipts will raise the burden of foreign debt overnight. It cannot stop smuggling as long as black- market transactions in foreign exchange continue. Devaluing the Pak. Rupee means devaluing the price of Pak labour and talent in the international market who send foreign exchange through home remittances. Devaluation will make Pakistan lose heavily both as seller and as a buyer and will make no good substitute for remedial changes in economic policies and developmental planning. Mohammad Ali Mian said that strong discipline should be exercised over all unproductive expenditures, whether it is public or private sector. He further urged the government to effectively utilise the human resources, which is abundant in Pakistan and is under- utilised. Moreover, cut in government expenditure would also be of great help.