Exchange rate erosion to make petrol, gas costly

ISLAMABAD – Ghiyas Abdullah Paracha, central leader All Pakistan CNG Association (APCNGA), on Monday said bringing down the value of rupee against the US dollar would hike the price of petrol and gas. The flight of dollar will increase poverty and jack up the cost of all projects including the economic corridor, he said.

Ghiyas Paracha said in a statement that energy is the largest import item and erosion in the exchange rate will boost its price which has been already increasing in the international market.

The price of oil and gas will be increased by seven to ten percent if the fall of rupee continued, he said, adding that it will damage industrial and agricultural production and almost every citizen of the country, therefore, the decision to weaken the rupee should be taken back.

The leader of the CNG sector said that local currency is being compromised to please IMF and exporters who have become addicted to packages and devaluation. The export sector should not seek aid from the government but improve its competitiveness while government should not compromise the interests of masses to please few sectors.

Ghiyas Paracha said that economic problems require attention and reforms as obtaining loans from debt market and devaluation currency will give temporary relief while masses will see the loss in the savings and the cost of debt servicing will increase by trillions of rupees.

He said that government has repeatedly announced to keep exchange rate stable and contradicted news regarding devaluation as rumours but now it continues to fall which is beyond understanding. It is pertinent to mention here that after deregulation the price of CNG has registered an increase of up to 18 percent.

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