The businessmen’s panel of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed their concern about the Pakistani rupee’s instability against the US dollar. The Pakistani business club urged the government to control this unfavorable scenario involving the local currency.
We find this latest foreign exchange report important to share with our readers, especially those trading the Pakistani rupee. We believe it can serve as their guide in their trading activities this week.
Mian Anjum Nisar noted that Pakistan’s economic growth and industrial expansion would not be possible if the Pakistani rupee is on shaky grounds. The FPCCI Businessmen Panel Chairman pointed out that in the fiscal year 2022, several factors can assist in containing the current account deficit at a sustainable level of 2 to 3 percent of the country’s gross domestic product or GDP.
Among them are resilience in remittances and a market-based flexible exchange rate system. Nisar added that the rising US dollar is illogical, despite the central bank State Bank of Pakistan saying the country’s external position was at its most robust in 10 years, with a 0.6-percent current account deficit this fiscal year.
Moreover, the FPCCI executive remarked that industry and trade sectors are unaware of the real exchange rate needed by the Pakistani central bank and which is the endpoint for the depreciation of the Pakistani rupee.
Nisar also pointed out that the overall Pakistani economy would face a hard time as the costs have surged, though exporters would benefit against their export proceeds. He explained that the rising greenback would impact consumption, which he described as the economy’s primary wheel.
Finally, Nisar referred to the Pakistani rupee’s depreciation against the US dollar as a mysterious development. He remarked that the local currency’s continued plummeting is not understandable as there was no fundamental modification in Pakistan’s economic indicators.
According to the report posted online by Pakistani daily English-language newspaper The Express Tribune, the US dollar has appreciated 7.15 percent in Pakistan since last May.
It touched a 10-month high to cross the 164-rupees mark. Analysts explained this event as caused by the burgeoning import bill and the current account deficit.
We think that the Pakistani national government should listen to the grievances aired by the businessmen’s panel of the Federation of Pakistan Chambers of Commerce and Industry.
We gathered that the appreciation of the US dollar in Pakistan since May by 7.15 percent versus the Pakistani rupee had created uncertainty, leading to foreign exchange rate instability in the country.
Plus, we learned that this trend had raised many imported products’ prices. We think that these events involving the Pakistani rupee at a disadvantage and the US dollar at the advantageous position would surely harm the Pakistani economy.
At this time, when the COVID-19 pandemic lashes out the world, including Pakistan, we believe that the nation’s government should do its part in helping the people impacted by the unfavorable foreign exchange situation.
Suppose this issue involving the Pakistani rupee gets addressed by listening to the businessmen’s panel. In that case, we believe that the citizens can survive and the country’s economy can move in the right direction.