ISLAMABAD, Continuing downslide of rupee has put a very negative impact on the economic growth of the country, badly hitting all the important areas of economy apart from increasing country’s foreign debt servicing liabilities.
These remarks were made by Yassar Sakhi Butt, President Islamabad Chamber of Commerce & Industry (ICCI). He showed great concern over 43 percent devaluation of rupee against US dollar since March 2008 and called upon the Government to take urgent measures to bring some stability in the falling value of rupee.
He said that depreciation of rupee was also multiplying the cost of doing business and badly hitting industrial, manufacturing and agriculture activities as Pakistan has to import fertilizers, food items and industrial raw material.
ICCI President was of the view that the costly imports were fueling inflation in the country, disturbing the balance of payments and widening trade deficit. He said that the import of petrol has also witnessed a significant increase due to low refineries production and reduced availability of CNG. If this trend continued, rupee would come further under pressure as country was experiencing rising imports, he added.
Yassar Sakhi Butt said that continuous power suspension to industries has squeezed the possibilities of producing export surplus due to which country might face a decline in foreign exchange earnings in coming days, which would further plunge the rupee down.Therefore, he stressed upon the Government to devise a comprehensive strategy to overcome power problems and increase exports.
He also emphasized on increasing inflow of foreign investment which was considered an important source of development for a country. He said that the Government should accord high importance to encourage foreign investors by creating investment friendly environment to accelerating the pace of country’s economic progress and stabilize the value of rupee.