AGL 7.91 Decreased By ▼ -0.09 (-1.13%)
ANL 11.30 Decreased By ▼ -0.02 (-0.18%)
AVN 84.74 Increased By ▲ 1.29 (1.55%)
BOP 6.24 Increased By ▲ 0.39 (6.67%)
CNERGY 5.69 Decreased By ▼ -0.16 (-2.74%)
EFERT 79.70 Decreased By ▼ -0.40 (-0.5%)
EPCL 65.58 Decreased By ▼ -1.71 (-2.54%)
FCCL 15.00 Decreased By ▼ -0.20 (-1.32%)
FFL 7.11 Increased By ▲ 0.07 (0.99%)
FLYNG 7.70 Decreased By ▼ -0.07 (-0.9%)
GGGL 11.70 Decreased By ▼ -0.20 (-1.68%)
GGL 17.39 Decreased By ▼ -0.26 (-1.47%)
GTECH 9.35 Increased By ▲ 0.17 (1.85%)
HUMNL 7.25 Increased By ▲ 0.05 (0.69%)
KEL 3.47 Decreased By ▼ -0.03 (-0.86%)
LOTCHEM 30.30 Decreased By ▼ -0.65 (-2.1%)
MLCF 28.40 Decreased By ▼ -0.12 (-0.42%)
OGDC 84.60 Decreased By ▼ -0.60 (-0.7%)
PAEL 16.99 Decreased By ▼ -0.12 (-0.7%)
PIBTL 6.13 Decreased By ▼ -0.02 (-0.33%)
PRL 19.49 Decreased By ▼ -0.35 (-1.76%)
SILK 1.29 No Change ▼ 0.00 (0%)
TELE 12.07 Increased By ▲ 0.02 (0.17%)
TPL 9.15 Decreased By ▼ -0.01 (-0.11%)
TPLP 20.20 Increased By ▲ 0.01 (0.05%)
TREET 26.99 Decreased By ▼ -0.11 (-0.41%)
TRG 96.86 Decreased By ▼ -0.44 (-0.45%)
UNITY 23.02 Increased By ▲ 0.19 (0.83%)
WAVES 13.30 Increased By ▲ 0.01 (0.08%)
WTL 1.46 Increased By ▲ 0.01 (0.69%)
BR100 4,338 Decreased By -23.6 (-0.54%)
BR30 15,953 Decreased By -55.9 (-0.35%)
KSE100 43,274 Decreased By -207.5 (-0.48%)
KSE30 16,389 Decreased By -86.8 (-0.53%)
Business & Finance

SBP urged to take steps for stopping rupee devaluation

  • Vice President of PBF Ahmad Jawad says Pakistan cannot afford a 'dollarised' economy
Published June 19, 2022

KARACHI: Vice President of Pakistan Businesses Forum (PBF) Ahmad Jawad has urged the State Bank of Pakistan (SBP) to control the continuous nosedive of the Pakistani rupee against the US dollar so that Pakistanis could get some relief from the unprecedented inflation amid recent dip in oil prices.

The oil prices tumbled about 6% to a four-week low on Friday over worries about interest rate hikes by major central banks. Brent futures fell $6.69, or 5.6%, to settle at $113.12 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $8.03, or 6.8%, to settle at $109.56.

Ahmad Jawad said the devaluation of the rupee during the PTI government in the name of a “market-determined” exchange rate was a blunder and now the PML-N government is continuing the same mistake. The IMF’s focus on just exchange rates without structural reforms to boost exports is wrong and misplaced and will not resolve our deep-rooted problems.

He said Pakistan cannot afford a “dollarised” economy; therefore, the government should control dollar flights without any further delay.

“Dollarisation is a situation when the local currency loses its stability as a medium of exchange due to hyperinflation or instability and the same is happening in Pakistan,” he said.

He stated we stay in large part a rentier financial system depending on outside help, with little incentive to remove the shackles.

Political instability perpetuated by the frequent interruption of the democratic political process has been one of the major reasons for the absence of a long-term reform strategy needed for sustainable economic growth. There is a need for continuity in policy. That can only happen if all political forces and military establishments agree on some basic charter of the economy.

Ahmad Jawad said we have to increase our agriculture yield, adding currently India is 35% ahead of us. We have to announce an agriculture emergency in the country and give incentives to farmers for using modern applications to save water. He said if we cannot boost agriculture timely soon we will become net food importers and then economic crises would go out of control.

It is also necessary that we expedite our efforts in an attempt to devise a comprehensive communication strategy and precautionary mitigating measures to tackle this menace. Our country is already water-stressed, and lack of water may lead us to water scarcity by 2025, he said.

Copyright Business Recorder, 2022

Comments

Comments are closed.

Taimur Khan Jun 22, 2022 06:56am
We waste a lot of water irrigating our crops. We dont need water intensive crops like rice and sugarcane. Instead of using sprinklers our farms inundate their crops with water 90% of which can be conserved if we use sprinklers. We allow 25 million cusecs to flow into the sea every year because we dont divert it into canals to irrigate sindh and baluchistan.
thumb_up Recommended (0)