Govt urged to arrest rupee devaluation

KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) on Wednesday expressed concerns over continuous devaluation of Pakistan’s rupee against dollar.

KCCI President Muffasar Atta Malik said the government recently devalued Pakistani rupee for the third time in six months and rupee continues to fall against dollar, stoking concerns that the country might have to go to the International Monetary Fund (IMF) for a bailout.

“We fear that the rupee may fall further in the coming months keeping in view Pakistan's dwindling foreign exchange reserves,” he said. “Currency devaluation for a country like Pakistan will have negative economic implications in the long run.”

Malik said that despite so many measures taken to discourage imports, including the imposition of regulatory duty on many items, Pakistan’s imports remained inelastic and a weaker rupee would not help.

It had taken almost 10 years to rebuild investor confidence to an extent as foreign investors were gradually making a comeback. “If the currency is devalued, it would send a negative signal to potential investors,” the chamber’s president said.

He advised the government to take measures for stopping further devaluation of rupee against dollar.