By Asad Cheema
ISLAMABAD: The business community at Islamabad Chamber of Commerce and Industry (ICCI) has expressed grave concerns over the dwindling value of rupee, which has fallen to Rs.167 against a dollar and urged that government should take urgent remedial measures to stabilize the rupee as its continuous depreciation would have devastating impact on the business and economic activities.
President ICCI Muhammad Ahmed Waheed said that Pakistan was mostly importing machinery, capital goods and raw material for industrial production while some industries were importing up to 70 percent of raw material for manufacturing activities.
However, the constantly falling value of rupee would make the imports of these things very costly, that would further enhance the cost of production making our exports more uncompetitive in the international market besides increasing inflation for the common man.
He said this situation demanded that government should make urgent intervention to stabilize the local currency in order to save the economy from further troubles.
ICCI President said that business community needed a stable currency to make the end product cost effective. However, frequent fluctuations in the value of rupee against dollar was thwarting all efforts of local industry to manufacture competitive and cost effective end products in the country for local consumption and exports.
Muhammad Ahmed Waheed said that falling value of rupee would also enhance the cost of debt servicing leading to more pressure on our forex reserves. He said Pakistan’s imports were much higher compared to its exports and rupee depreciation would thus bring more problems to the overall economy as it would further enhance the cost of doing business in the country.
The ICCI President cautioned that if rupee continued to fall, it would badly affect the trade and industrial activities leading to bankruptcy of many SMEs. He, therefore, called upon the SBP and the government to make urgent intervention in the matter and take strong measures to stabilize the currency in order to save the economy from its destructive impact.
