MULTAN: Business community has shown severe concerns over continuous devaluation of Pakistani rupee against dollar and indicated that it will also post financial crisis in the country due to meagre polices of management. Business community suggested government to adopt long term policy for better progress of national economy rather than short term strategy for tackling this existing crisis.
These views were expressed by former provincial minister and President Chamber of Commerce and Industry Multan Khawaja Jalaluddin Roomi on depreciation of Pakistani Rupee.
Roomi said that weakening of Pakistani rupee against dollar is a point of concern for the national economy as it will hike the price of prices of petroleum, electricity, gas and it will also insert huge pressure on the manufacturing sector. Depreciation of currency will hit local economy and manufacturers will be disturbed badly due to recent crisis as their production cost will also increase in this current scenario. He proposed that government should impose duty taxes on the import of luxury items to provide relief to the business community and for the sustainability of economic growth.
The devaluation of currency can be controlled through growth in the foreign remittances earned by Pakistani and it will halt the rise in the value of dollar. Due to sudden collapse in the value of Pakistani rupee it will also widen the foreign debts which increase the economic challenges of country and weaker currency makes a country’s exports cheaper globally and makes it more expensive for local residents to buy foreign goods, which may widen trade deficit further.
President Multan Chamber of Commerce and Industry Malik Israr Ahmad Awan told that depreciation of Rupee will bring high inflation in the country and commericial banks will also raise their mark up in this situation which is not impeccable for the business community and increase in mark up from banks will produce harms for the local manufacturing industry. Devaluation of Rupee will increase trade and financial deficit which is harmful for the whole economy because manufacturers could not afford bank loans on the high mark and business activity in the country slows down due to negative impact of currency devaluation.
All Pakistan Textile Mills Association member (APTMA) Khawaja Muhammad told that currency depreciation always hits our economy badly and 90 % of country population will face hike in the price of basic commodities due to recent weakening of Pakistani Rupee. Textile sector will face its consequences along with other industries and raw material; machinery became expansive due to recent depreciation of Pakistani Rupee.
Chairman All Pakistan Cotton Ginners Association (PCGA) Haji Muhammad Akram suggested that government should formulate long term policies in order to curtail on-going crisis and short term policies will never work out. Government need to adopt effective strategy for the development of economy that could assist business community otherwise economy will face serious challenges due to sudden drop in the Pakistan Rupee and there are rumours that government involved in the existing depreciation of Pakistani Rupee and it also indicates that Dollar will go to Rs.120 in a few days. He advised government to formulate economic with the assistance of stakeholders and finance ministry should consider positive suggestions of business community for implementation.
