FPCCI’s BMP urges govt to take steps aimed at arresting slide of Pak rupee

LAHORE: The Federation of Pakistan Chambers of Commerce & Industry’s Businessmen Panel has urged the government to control volatility of rupee against the US dollar, as the local currency continued to lose ground and fell to an all-time low of almost Rs174 against the US dollar in the inter-bank market, putting the industrial revival and economic growth at risk.

FPCCI’s Businessmen Panel Chairman Mian Anjum Nisar said that apart from increasing exports and keeping a check on imports the government will have to take administrative measures, as a large demand of cash dollars are seen in the market.

He was of the view that State Bank of Pakistan will have to remain vigilant in this regard. Besides this, the SBP and the government also need to intervene and come up with policy reforms to control depreciation of rupee which is becoming more and more valueless.

Referring to the data released by the central bank, he said the rupee maintained the downtrend for the past five month, as it has lost 14.24% (or Rs21.69) compared to the 22-month high of Rs152.27 recorded in May. With a fresh decline of 0.28%, the rupee has depreciated 10.42% (or Rs16.42) since the start of the current fiscal year on July 1, 2021, he added.

Copyright Business Recorder, 2021