‘Rupee devaluation to negatively impact economy’
Faisalabad Chamber of Commerce and Industry (FCCI) President Syed Zia Alumdar Hussain has said that the depreciation of Pakistani rupee would have a massive negative impact on the already fragile economy of the country.
In a statement issued on Monday, Hussain said that one-time jump of approximately 8 rupees is unbearable for the importers as well as exporters who have to explore new resources to fulfil their international financial deals. He negated the impression that the appreciation of dollar is in the interest of exporters. He said that it is a national issue and must be taken in this perspective.
The FCCI president said that one-time increase would have no match with the depreciation of our real assets and principal capital. He said that the increase in the price of imports would have a trickledown effect on our domestic prices in addition to increasing the cost of exportable surplus. He further said that the depreciation of rupee would push cost of doing business upward and the businessmen would be unable to compete with rivals businesses from other countries.
Hussain added that the domestic, as well as foreign debts, have also increased with this singular jump, while speculations were rife regarding further increase in dollar rates. He was also critical of increase in policy rate by State Bank of Pakistan for next two months and said that increase of 150 basic points would make new investment unaffordable for the local investors.
The FCCI president demanded that the government of Pakistan should indentify the root causes of this depreciation and take immediate measures to control any psychological impact leading to panic in money market. He further said that the inherent weaknesses of our monitory and financial system should also be identified with necessary policy measures so that immediate steps could be taken to stabilise rupee.