The Islamabad Chamber of Commerce and Industry (ICCI) on Friday expressed concern over renewed interest of masses and business community in the US currency which can result in dollarisation of economy. A weak rupee will force masses and the business community to trust dollar which is against the national interests, said ICCI President Atif Ikram Sheikh.
Talking to a group of traders led by Iftikhar Khan, a business leader from Malakand, he said authorities must take steps to reverse the trend before it left rupee weightless. Sheikh said that tendency among masses and business community to use foreign currency in parallel to domestic currency was very dangerous which could not be countered by statements or administrative measures. “A reason for quick dollarisation is negative rate of return given to the depositors which leave many with no option but to prefer dollars to reduce risk associated with inflation and devaluation. This is where the SBP could have played an important role. The situation can only be controlled by applying economic measures and encouraging use of local currency.”
The government must ensure better regulations, enabling and transparent policies, mobilise resources, keep inflation, deficit and balance of payments in control and limit borrowing to boost forex reserves, he demanded.
