Public groans under aftermath of rupee devaluation

Rawalpindi: Increase in the dollar rate leads to immediate rise in prices of all food items, petrol and services, people belonging to all walks of life, global experts and office-bearers of trade bodies told 'The News' here on Wednesday.

Economic experts and traders have warned of an overall 5-7% increase in almost every commodity as an aftermath of jump in dollar price. This undoubtedly is an alarming situation for public. All kinds of pulses, chocolate, dry milk, cooking oil, ghee, tea and several other food items will be costlier by 5 to 7 per cent in the near future.

Vice chairman All Pakistan Traders Association (APTA) Shahid Gafoor Piracha has strongly condemned government policies and demanded immediate steps to bring down the price of dollar otherwise they would be forced to take to streets. He said that businesses of every kind that was already under pressure due to taxes of all hues has suffered a shocking loss due to depreciation of rupee.

We have called an emergency meeting to consider taking to streets against government economic policies, he warned. Rawalpindi Chamber of Commerce and Industry (RCCI) Senior Vice President Nasir Mirza has showed serious concern on present economic situation in the country. "We will start shutter down strike here in Rawalpindi and Islamabad from next week against government policies," he warned.

He said that external debt is increasing day by day. “How shall we pay back external debt with interest that has swelled due to depreciation of rupee.” The increase in interest rates by the US Federal Reserve would lead to an appreciation in the value of the US currency, which would carry adverse implications for developing countries including those that have obtained big foreign loans, he said.

He said that the current account deficit and related factors were building pressure on the economy which resulted in the depreciation of the rupee against the dollar. He said that a positive aspect of the increase in the dollar rate is that the country's exports, which have dipped in the past several years, can increase along with the country's industrial output. He also added that the recent climb of the dollar could also be a result of the delayed devaluation of the Pakistani rupee, which has been delayed for over a year.

Shahdab Ahmed, a common citizen has strongly condemned government policies added that we are passing through hard times. It is the common man alone who is bearing financial burden of such policies. But, government is not considering public grievances. He said that prices of all kind of food items had already skyrocketed and the depreciation of rupee will rub salt into our wounds.

As per economic experts, Pakistan's interest on foreign loans has sharply risen after the rise in the value of dollar. Experts have also warned that if the value of dollar continues to rise then the prices of food items as well as other commodities will also increase.

According to global experts, with dollar rate increase, prices of petrol and diesel might be increased by Rs1, cooking oil/ghee by Rs10 per kilogram, pulses by Rs5-7, tea by Rs10 per kilogram and dry milk by Rs25-30 per kilogram.