RAWALPINDI: The Rawalpindi Chamber of Commerce and Industry (RCCI) has expressed serious concerns over the sharp fall in the value of Pakistani rupee against the US dollar. RCCI President Malik Shahid Saleem in a statement said that the depreciation of Pakistani rupee would have a massive negative impact on the already fragile economy of the country. “The dollar has risen to an all-time high of Rs163 in open market and it must be controlled, as it could have a devastating impact on all segments of society, particularly the Small and Medium Enterprises (SMEs),” he added.
Devaluation of rupee against all major international currencies is the reflection of weakness of the economy, he remarked. “The depreciation will increase prices of all the essential items and will result into high inflation,” he added.
He said that the fall of rupee in open market from Rs 157 per dollar to Rs 163 per dollar in just one day should be a cause of great concern for policymakers and monitoring bodies. He said that one-time jump of approximately 6 rupees is unbearable for the importers as well as exporters who have to explore new resources to fulfil their international financial deals.
RCCI president cautioned that It must be kept in mind that the rising dollar would lead to expensive imports and the exporters will also bear the brunt due to rise in cost of imported raw materials, plunging the economy into further deep crisis. “We fear that the rupee may fall further in the coming months, keeping in view Pakistan’s dwindling foreign exchange reserves,” he said. Currency devaluation for a country like Pakistan will have negative economic implications on revival of Auto, Pharmaceutical and Information Technology sectors, he opined.
Malik Shahid Saleem said falling value of rupee would increase the debt burden on the country as a Rs1 devaluation causes a Rs60 billion jump in the public debt burden. He stressed that government should take urgent measures to end volatility and bring stability in the local currency.
