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ICCI shows concerns over sharp fall in value of rupee

ICCI shows concerns over sharp fall in value of rupee

ISLAMABAD: The Islamabad Chamber of Commerce & Industry has shown great concerns over the sharp fall in the value of rupee against dollar as it would unleash a new wave of inflation in the country and create additional problems for the business and industrial activities.

Sheikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry said that rupee has fallen from Rs.110 per dollar to Rs.115 per dollar in a single day that should be a cause of great concerns for the policy makers. He said the rupee was devalued by about five percent in December last year in similar manner and another devaluation of over 4.5 percent in a single day would create new challenges for the economy. He said instead of withdrawing support for the rupee in the daily market, State Bank of Pakistan should make efforts for a stable currency as volatile currency was disturbing the efforts of private sector for long-term business planning.

He said falling value of rupee would increase debt burden on the country as devaluation of Rs.1 caused Rs.60 billion jump in the public debt burden. He said the local industry needed new technology and machinery to upgrade itself and compete effectively with Chinese counterparts in the CPEC projects. However, the sharp fall in the value of rupee against dollar would make the import of industrial machinery costlier and thwart efforts aimed at up-gradation of industry. He stressed that government should take urgent measures to end volatility and bring stability in the local currency.

Muhammad Naveed Senior Vice President and Nisar Mirza Vice President ICCI said that common man was already overwhelmed by the inflation and sharp devaluation of rupee would give rise to high inflation putting additional burden on the general public. They urged that the government in consultation with private sector should evolve a new strategy to deal with the issue of falling value of currency and to put the country on the path of sustainable economic growth.