- Demands government to stop currency smuggling
Islamabad Chamber of Small Traders (ICST) on Sunday expressed concern over rapid erosion of the exchange rate terming this movement against the national interests. Government should take all necessary steps to stem the fall in value of rupee including taking measures to stop smuggling of currency, said Patron, Islamabad Chamber of Small Traders, Shahid Rasheed Butt.
In a statement issued here, he said that the recent hike in value of the dollar has unnerved importers and the business community as it will result in inflation while foreign loans have surged by almost $2.5 billion. He said that increase in the value of the dollar will escalate cost of everything including all the projects currently in different stages of completion.
Butt said that devaluation of currency would increase oil import bill to an extent that it would counterbalance any gains by the export sector.
He said that fall in value of the rupee relative to the dollar is unfortunate which will take a toll on the masses as imports are almost double to exports. It will damage the masses by making imports costly and stoking inflation.
Contrary to expectations, devaluation of rupee will not support the exports, therefore the export industries should focus on cost reduction, skill development, value addition and upgrades, he said.
Export sector has become addicted to subsidies, tax breaks, bailouts, and currency devaluations and this recent development will deprive them of incentive to upgrade machinery, improve quality and find new markets, he said.