Economic growth not possible without rupees’ stability: FPCCI

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) president Mian Anjum Nisar has urged the government to control the volatility of rupee against the US dollar, as the industrial revival and economic growth was not possible without the stability of the local currency.

In a statement, Mian Anjum Nisar said that Pakistani rupee continued its downward slide against the US dollar having no sign of recovery, despite the fact that Pakistan’s Current Account Deficit (CAD) has reduced by 78 percent owing to lower imports and better inflows.

The FPCCI President further said that the CAD fell to $2.97 billion during the fiscal year 2019-20 while the import bill fell by 19 percent to $44.57 billion during this period but rupee continued to sink.

He said that the sharp depreciation of rupee shows that Pakistan was again moving towards a trade deficit regime, which might jack up the current account deficit yet again.

“The inflows of workers’ remittances also grew by 6.4 percent to $23.12 billion during fiscal year 2019-20 which should have a positive impact on dollar-rupee exchange value,” he added.

Mian Anjum Nisar said that the huge depreciation of Rupee continued to damage the economy, as the cost of deals done by the businessmen with their foreign counterparts has increased manifold due to the massive fall of rupee against the dollar.

“Apart from 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,” he suggested.

Terming rupee depreciation against the dollar a mysterious development, he said that continued fall of rupee was not understandable with a fact that there was no fundamental change in country’s imports during the last few months while other economic indicators are also the same for a long time.