NKATI terms dollar rate hike constantly as direct tax

KARACHI: President, North Karachi Association of Trade & Industry (NKATI), Faisal Moiz Khan, while expressing deep concern over rising dollar rate, plead to the federal government, especially Governor State Bank of Pakistan, Reza Baqir to adopt effective strategies to curb the dollar leaps, so that the local economy can be protected from its effects and inflation can be controlled.

Faisal Moiz Khan said that the rate of the dollar has increased from Rs 110 to more than Rs 167 during the last three years. As a result, the prices of daily necessities are increasing with each passing day.

NKATI chief termed the increase in the dollar rate as a direct tax and said that taxes are already plentiful and now the rise in the value of the dollar is proving to be a new tax for the people and traders. “The price at which everyday items are sold in the market today, as the value of the dollar rises, so do the prices of everyday items. As a result, the greatest burden falls on the people,” he stressed.

“The dollar had appreciated by 15 percent against the rupee in just one month, which was a dangerous sign as the purchasing power of the people had already responded. Therefore, when the purchasing power of the people is gone, they will not come to markets and the business community will not be able to do business and inflation will rise also”, he added.

Faisal Moiz Khan requested the Federal Government and Governor SBP, Reza Baqir to take steps to control fluctuations in the dollar, and said that the federal government should review their spending and adopt such an effective policy so that the dollar rate remains under control and the value of the rupee does not decrease.

NKATI president opined that if the government does not rein in the dollar, there will be a storm of inflation in the country and it will have a very negative impact on the economy.