Although fall in crude oil prices and lower import bill will support the rupee in money market but the government should take more steps to strengthen the rupee for the economic revival.

Forex Association of Pakistan President Malik Bostan, while exchanging views with The Nation, said the fall in oil prices is good for the country’s economic recovery. Since the country imports oil, a fall in the price of oil meant an improvement in the balance of payments and a rise in the Pakistani currency rate.

The oil bills constitute the biggest item in the import list of Pakistan, thereby disturbing the balance of payments. Also, rising oil prices over the past few years have emptied Pakistan’s foreign reserves and are also impacting the price of the rupee, which has been declining against the dollar.

Now, a fall in the oil price will reduce the import bills of Pakistan, thereby improving the balance of payments, foreign reserves and, of course, the value of the rupee. Also, this price fall will reduce the cost of inputs, which will be reflected in the prices of final products. Any reduction in the cost of production means a reduction of inflation in the country, he added.

Malik Bostan said international establishment is not in the favor of our country and mostly have the reservations over Pakistan-China Economic Corridor. He said the purposed corridor will further accelerate the economic activities in the country besides supporting the business development that will ultimately strengthen the rupee value. He also indicated that the growth in workers remittances is a good sign for rupee stability.

He urged the government to introduce the monitoring system for price control that would provide the relief to people of Pakistan and control the price hike in existing system by fixing the price through mechanism. He hoped that energy crisis will be controlled in near future and would generate the employment opportunities.