By Shakil Paracha
KARACHI: President Karachi Chamber of Commerce & Industry (KCCI) Junaid Esmail Makda, while expressing deep concerns over serious devaluation of rupee against dollar, said that dollar has risen sharply to all time high of Rs134 which has to be controlled otherwise, it will have a devastating impact on all segments of society, particularly the middle and lower segments of the society, besides making the poor more poorer due to unbearable inflation.
In a statement issued, President KCCI said that the State Bank has devalued Pakistani rupee from time to time during the last six to eight months and the rupee plunged terribly against dollar yesterday in response to government’s decision to rush towards the IMF. “We fear that the rupee may fall further in the coming months keeping in view Pakistan’s dwindling foreign exchange reserves”, he said, adding that such abrupt devaluations in the past brought about economic distress, which lasted for several years. Currency devaluation for a country like Pakistan will have negative economic implications in the long run, he opined.
Junaid Makda further elaborated that although the exporters will be happy to see rising value of dollar and the country’s economic indicators will also display some improvement in exports but this increase can only be attributed to dollar value as the export volume remains the same, in fact, our exports have descended sharply to many destinations around the world because of rising cost of doing business.