Immediate steps to control PKR depreciation demanded

September 12, 2021: All Pakistan Businesses Forum on Sunday urged the government to take immediate and effective measures to control Pak rupee's depreciation against US dollar to save the country's economy.

PBF Vice President Ahmad Jawad told the media that rupee's depreciation was also one of the major causes of price hike that was hitting every sector of economy including agriculture as cost of agri inputs particularly fertilizers had increased manifolds.

After having trade with Afghanistan in Pak Rupee (PKR), he suggested that Pakistan must also make trade deals in PKR with other neighboring countries.

Ahmad Jawad said, "It is also a good move for our importers to deal in rupee. In a currency-swap arrangement, countries that buy from each other pay with their domestic currencies at pre-determined exchange rates instead of trading in the US dollar. This helps them save foreign exchange and thereby strengthen their domestic currencies.”

He said the government must constitute a task force with representatives from the Commerce Ministry, the State Bank of Pakistan, the Federation of Pakistan Chambers of Commerce and Industry, to draw up a list of countries with which Pakistan could consider doing its trade in rupees.

"I think trade with Iran and China should also be in rupee, as we have a substantial import from China," he opined.

Though exporters would get some benefit against their export proceeds but the overall economy would face a tough time as the cost has been rising and finally it would affect the consumption, the main wheel to run the economy. “We are spending almost three dollars in imports for every dollar earned from exports and we cannot afford to keep imports this high,” he added.

APP