KARACHI: President of United Business Group (UBG) Zuabir Tufail has urged Prime Minister Imran Khan and Governor State Bank of Pakistan (SBP) Dr. Reza Baqir to intervene and control the sharp rise in the value of the US dollar against the Pakistani rupee, and freeze the dollar to a certain level; otherwise the country's economy would not be able to sustain.
With the rupee reaching Rs167 against the US dollar, there will be a storm of inflation in the country. Food prices will skyrocket. The livelihood of the poor and middle class will become more difficult, he said.
He said that the gap between imports and exports was widening and if immediate steps were not taken, the situation could become alarmingly dangerous. He said that the government should take steps to curb unnecessary imports on an emergency basis.
Zubair Tufail said that the Governor State Bank has repeatedly hinted at freeing the value of the dollar in the market, adding in the current situation the economy cannot run smoothly.
He said that controlling inflation in the country has already become a challenge for the government. In such a case, not controlling the value of the dollar will only add to the miseries of people. It will be difficult for the government to deal with the sharp rise in the national debt, historical inflation and then the yawning trade deficit.
He appealed to the Prime Minister that in this era of inflation, it has become inevitable to freeze the value of the dollar at a certain point, as the people of Pakistan can no longer afford the rising inflation.
Zubair Tufail also appealed to the Prime Minister to take immediate action realizing the gravity of the situation as the appreciation of the dollar has led to fears that the rupee will depreciate further which is not only a bad omen for national security but also for the economy.
He further said that if Prime Minister Imran Khan did not resolve this issue, Pakistan's sovereignty would be endangered and the country's debt would increase exponentially. That is why it is important to control the value of the dollar and ban unnecessary imports.
Copyright Business Recorder, 2021