KARACHI: Vice President of Pakistan Businesses Forum (PBF) Ahmad Jawad has called upon the economic managers to intervene as once again the cost of one dollar is now equal to Rs162 despite remittances being good, the Current Account has been in surplus or close to it, and foreign exchange reserves are also at a record high.
"With devaluation, there is inflation. When there is inflation, your disposable income vanishes, which affects consumption behaviour and purchasing power."
Talking at a presser, Jawad said we must understand that depreciation of rupee means a burden on the economy. It increases the cost of debt servicing by both the private sector and the government.
It's high time the government controlled volatility of rupee against the US dollar and came up with policy reforms to control depreciation of rupee which is becoming more and more valueless as the industrial revival and economic growth is not possible without stability of local currency.
The PBF official also suggested that the government should ask State Bank of Pakistan to work out a mechanism with the help of NADRA for more facilitation through the Roshan digital accounts especially in foreign currency for overseas Pakistanis with an ATM card facility.
"Government must announce measures to facilitate overseas Pakistanis while opening dollar account in Pakistan and give them a facility to transfer their amount through internet banking as well, so that they should be encouraged more to place their foreign currency in Pakistani banks," he underlined.
He said that currently local banks were not giving even a single facility to overseas Pakistanis on opening foreign currency account in Pakistan.
Placing dollars in accounts with no facility discourages the expatriates to invest in our banking channels, he said.
In Western countries, he cited, customers enjoy the facility that they can transfer their money anywhere in the world at will through internet banking or online transfer.
He said it was high time the State Bank of Pakistan simplified the procedures and facilitation for overseas Pakistanis.
"Overseas Pakistanis are among our national assets. They can play an important role in improving the country's financial conditions through remittances and deposits," he said.
Jawad further said that the condition of tax filer may also be removed for overseas Pakistanis to open normal bank account in foreign currency in any bank because they earn money internationally and pay their taxes in the country where they lived.
Copyright Business Recorder, 2021
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