LAHORE: President of the Friends of Economics and Business Reforms (FEBR) Kashif Anwar has expressed concern over rapid increase in price of the US dollar and urged the government to control the surge in its price as its continued rise would deal a tough blow to the economy.
In a statement, he said the surge in price of dollar would badly affect the manufacturing sector as raw materials would become costlier and the cost of doing business would increase as well.
He said the devaluation of rupee would lead to high inflation in the country and halt economic growth by hitting all the important sectors of the economy. Hike in price of dollar would lead to increase in import costs and POL prices, etc.
The FEBR chief said the government and the State Bank of Pakistan should ascertain the factors that are serving to decrease the value of rupee and check the possibilities of undue speculation and panic buying. This will help stabilise the currency’s value and restore the confidence of business community.
Kashif Anwar was of the view that unchecked increase in dollar rates would multiply the cost of doing business and badly affect the industrial, manufacturing and agriculture sectors as the country had to import fertilisers, food items, oil, machinery and industrial raw materials.
Although a weaker rupee benefits the exporters by giving them more rupees per dollar, the advantage is neutralised by the costly import of inputs to the manufacturing sector, including textiles.
He added that soaring value of the greenback would lead to an inflated import bill and simultaneous lowering of the competitiveness of local business and industry.
Copyright Business Recorder, 2022