Rupee will continue to weaken this year if damaging policies not changed: Shahid Rasheed
Former President of Islamabad Chamber of Commerce and Industry (ICCI) Dr. Shahid Rasheed Butt has said that keeping in view the prevailing circumstance, it was feared that the rupee will continue to weaken in the ongoing year if damaging economic policies were not changed.
In a statement issued here on Wednesday, he stressed the need to immediately tailor the economic policies as per national interests to avoid the approaching doomsday scenario.
Shahid Rasheed Butt said that the dollar could hit the mark of Rs185 during the current year, but if the elite-friendly policies continued, the dollar could reach Rs200.
The rupee will get some support if the IMF loan is restored but the effects will be temporary, he added.
The business leader said that the central bank has 17 billion dollars, but the rupee continues to depreciate because half of the foreign exchange reserves are based on borrowed money.
The hefty forex reserves have no effect on the value of the rupee and the continued devaluation of the rupee reflects the real economic situation, he said.
The former ICCI President said that the remittances are declining while exports are not growing as expected which is putting all the pressure on the local currency.
The government has doubled its spending in the last three years, while its reliance on loans has increased significantly, which is worrying.
The incumbent government has borrowed $ 42billion from foreign sources in three years and will continue to do so this year as there is little chance of real reform in any sector.
Immediate review of all the economic policies is necessary so that they can be arranged according to national interests, he demanded.