TDAP’s proposal to devalue currency by 10 percent to support exports is against the people of Pakistan, which must not be accepted under any circumstances, a business leader said Friday.
“Devaluation of rupee will improve exports to some extent but will make imports costly by 22.5 percent, trigger inflation and increased trade gap. The country cannot be pushed into darkness to benefit some exporters,” said patron Islamabad Chamber of Small Traders Shahid Rasheed Butt.
Speaking to a meeting, he said that those advocating erosion are representing elites club while working on an agenda of someone else, which require thorough probe and stern action.
Butt said that Finance Minister Ishaq Dar had taken great pain to stabilise exchange rate, which should not be allowed to depreciate as he said that blacksheep were after economy, which will not be allowed at any cost.
The veteran business leader said that the TDAP’s proposal, if accepted, would hurt foreign investment and speed up dollarization of economy as many traders protesting tax on bank transaction have already abandoned rupee in favor of dollar.
He expressed fear that apart from augmenting debt and interest, it can have an impact on record investment planned by China for economic corridor. Butt said that Pakistan cannot jump in the race of devaluation without considering pros and cons as the country cannot afford to face a currency crisis like 1997-98 that damaged many leading economies.
