By Karim Madad

ISLAMABAD, July 26: People from different walks of life including the business community have expressed concerns over the devaluation of the Pakistani rupee against the greenback, WealthPK reports.

However, Minister for Finance Miftah Ismail has said in a statement that the pressure on the Pakistani rupee would start receding from next month with the persistent decrease in imports.

The US dollar has reached Rs232 in the interbank trade, posing serious challenges to the national economy besides enhancing inflation in the country. The minister said that the domestic financial markets were jolted after the Punjab Assembly bye-elections on July 17, but the situation was now under control as the coalition government resolved to complete its tenure.

He said that the current month’s imports decreased as compared to that of last month and the same month of the previous year. He termed the fresh pressure on the rupee against the dollar a result of political uncertainty in the country as the people felt that the federal government might not stand. “However, when the government made it clear that it would complete its tenure, the negative sentiments died down immediately,” he said.

The minister said that the State Bank of Pakistan (SBP) had taken multiple measures due to which very few letters of credit (LCs) were opened. “Imports will fall in the current month and further reduce in the next month,” he added.

He said that the country had storage of more than two billion litres of diesel, which was enough for the next 60 days. “So we do not need to import it for at least one month. The government also has stock of furnace oil enough for the next two to three months,” he added.

Miftah Ismail said that demand for gasoline had also reduced after an increase in the prices of petroleum products. He said that the impact of all the factors would be witnessed next month, with a significant decline in the demand for dollars in the banks. He hoped that the Pakistani rupee would start strengthening against the US dollar.

With regards to rumours about the economy, he said it was going in the right direction. He dispelled the impression of any default. “Last month, the country’s import bill of $7.5 billion was historically high, and $3.7 billion of the amount was related to the energy sector and the rest $3.7 billion to others. The pressure on the rupee is now mounting due to payments of these imports,” he added.

The minister said that the government had no regret over taking tough economic decisions as it risked political gains only to save the country from default.

Meanwhile, President of All Pakistan Anjuman Tajiraan Ashraf Bhatti said in a statement that the depreciation of the Pakistani rupee against the dollar was putting pressure on the national economy.

He urged both the government and the opposition to sit together and adopt a joint economic strategy to steer the country out of the current situation. He also called upon the government and SBP to take immediate steps to check the depreciation of the Pakistani rupee.

Ashraf Bhatti said that the devaluation of the Pakistani rupee against the dollar led to an increase in foreign debts besides hindering investment in the country.

President of SAARC Chamber of Commerce and Industry Iftikhar Ali Malik also expressed serious reservations over the devaluation of the Pakistani rupee.

“This situation will further increase inflation besides impeding industrial development. The government should take immediate steps to control this situation for the national interest,” he told WealthPK.

Credits: INP-WealthPk