LAHORE: Pakistan Industrial & Traders Associations Front (PIAF) Chairman Irfan Iqbal Sheikh has urged the government to take action against shortage of dollar in local market, besides controlling surge of dollar against rupee, as local currency depreciation has inflicted heavy losses on the national economy.
PIAF Chairman Irfan Iqbal Sheikh in a joint statement along with senior vice chairman Tanveer Ahmed Sufi and vice chairman Khawaja Shahzeb Akram expressed surprise over sudden appreciation of dollar in spite of record foreign reserves and smooth flow of remittances.
He called for launching a crackdown against illegal money changers, as cost of deals done by the businessmen with their foreign counterparts has increased manifold and country loses at least Rs57 billion over devaluation of just one rupee which is detrimental.
He said that illegal international transactions in dollar-denominations via Dubai is creating shortage of dollars in Pakistan open market.
As a result, the US dollar traded at Rs108 in the open market during this week, which was in range from Rs105-106 throughout 2016.
Irfan Iqbal said that local currency is losing position mainly due to gold smuggling from Dubai, eating up around $5 million daily.
PIAF chairman asked the finance minister to direct Federal Investigation Authority (FIA), Intelligence Bureau, Custom Intelligence and State Bank of Pakistan to keep strict vigilance to control currency and bullion smuggling.
He said the State Bank should immediately take notice of the situation which is causing panic in the currency market.
He said that the widening current account deficit, excessive government borrowing, absence of foreign flows and lack of foreign investment are the vital reasons for constant depreciation of Pak rupee.
The PIAF leadership stated that despite the fact that economic indicators are improving, growth continuing to gain momentum, inflation on a downward trajectory and credit to the private sector rebounding sharply yet the local currency is falling as low as Rs108 against the greenback which is question mark for the economic managers of the country. —INP
