Published On: Tue, May 10th, 2022
Published in Category: Karachi

Businessmen for stable exchange rate as feeble rupee keeps hitting economy

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Karachi: The Federation of Pakistan Chambers of Commerce and Industry’s Businessmen Panel (BMP) has urged the government to control instability of rupee against the US dollar, as the industrial expansion and economic growth is not possible without stable local currency.

FPCCI former president and Businessmen Panel (BMP) Chairman Mian Anjum Nisar observed that dollar continued to appreciate against the rupee because of the higher current account deficit and burgeoning import bills. Besides increasing exports and controlling imports the government will have to take administrative measures, as a large demand of cash dollars are seen in the market.

Terming rupee depreciation against dollar a mysterious development, he said that continued fall of rupee is not understandable with the fact that there was no fundamental change in the country’s economic indicators.

FPCCI former president observed that the market-based flexible exchange rate system, resilience in remittances and other factors can help contain the current account deficit in a sustainable range of 2-3 percent of GDP in FY22.

Pakistan’s rupee remained on the receiving end, depreciating 0.5% against the US dollar in the inter-bank market as pressure persisted on the currency amid lack of clarity on inflows and economic support from international lenders and friendly countries.

In the open market, the Rupee lost 50 paisas for buying while remaining unchanged for selling against USD, closing at 186.50 and 187, respectively.

As per the State Bank of Pakistan (SBP), the rupee closed at 186.63 after a day-on-day decline of 94 paisas or 0.50%. Last Saturday, the rupee had closed at 185.69 after a decline of 0.03%.