LCCI Acting President Khawaja Khawar Rashid, Vice President Zeshan Khalil and Executive Committee Members said in his statement here that inter-bank US dollar rate was calling for immediate attention of the SBP to avoid economic crisis. They said that Pak rupee devaluation would be the last straw on the back of camel as external debts were already around US$89 billion, exports were stagnant and trade deficit was swelling.
Lahore chamber office-bearers said that after a short span, dollar had once again started to further lower Pak rupee that would reignite high inflation and halt growth by hitting all the important sectors of economy.
They mentioned that US dollar price against rupee was Rs4.76 in 1960s, Rs59.30 in 2005 and touched the heights level during this financial year and this trend led to trade deficit, import costs, hike in petroleum products prices etc. Recent surge prices of the greenback would jack-up the input cost that would hit export-oriented industries hard, therefore SBP need to ascertain the factors weakening Pak rupee and check the possibilities of undue speculations and malpractices the operation of foreign exchange markets in Pakistan.
This would help stabilize rupee and restore the confidence of the business community, they opined.
They said that an unchecked increase dollar rates is multiplying the cost of doing business and badly affecting the industrial, manufacturing and agriculture sectors as Pakistan has import fertilizers, food items, oil, machinery and industrial raw material.
The office-bearers said the government should take immediate measurements for further devaluation of rupee to avoid more damaging consequences for the economy. Though the weaker rupee benefited the exporters by giving them more rupees per dollar but this benefit was neutralized by the costly imported inputs of manufacturing sector including textiles thus eroding the financial advantage of a weaker rupee, they observed.
LCCI office-bearers said that if the greenback continued its upward flight, it would certainly inflate import bill besides lowering the competitiveness of Pakistan's business and industry. Therefore, government should get quickly into action to arrest this dangerous trend. The LCCI Acting President suggested the government should immediately review its energy plan, introduce institutional reforms and curtail non-development expenditures.