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Rupee devaluation to bring new wave of inflation: experts

By Our Correspondent
July 19, 2018

LAHORE: Devaluation of rupee against the US dollar will affect all segments of society, PML-N, PTI and PPP experts should evolve a mechanism to handle the issue and Senate Standing Committee on finance can play an effective role in this regard.

These views were expressed by the experts at Jang Economic Session on ‘impact of devaluation of rupee against US dollar on economy and society’. The panellists were Ansar Javeed, Almas Haider, Khalid Ahmed, Asif Baig Mirza, Dr Salahuddin Ayubi and Irfan Elahi while the session was hosted by Sikindar Lodhi.

Ansar Javeed called for decisions in accordance with international scenarios, adding unfortunately policies remained inconsistent and no future vision policies were made. He said futuristic effective policy formation and its implementation can bring financial stability. He said financial instability was basic reason for all financial issues. He called for making FBR and other institutions effective to increase tax revenue and get rid of amnesty schemes. He said think-tanks and experts should suggest research oriented solution for better results while Indian and Turkish style tax reforms are required.

Almas Haider said industrial problems will further increase with devaluation of rupee while trade deficit has reached $20 billion.

He called for ending concept conventional products exports and expanding it to other exports. He said modern world was not moving orthodox way so there was a need to expand market to strengthen economy. He said lack of research and development was the reason for poor growth while imported economic formulas would not solve local economic issues.

Khalid Ahmed said due to poor economic governance rupee has devalued to this level which will bring a new wave of inflation and affect the poor. He said political contest was affecting socio-economic progress and personal interests should not be given preference to national interests and consensus should be evolved on national issues. He suggested focus on value addition in export goods for which local industry should be facilitated.

Asif Baig Mirza said Pakistan’s economy was sensitive and the government did not have required power to control it. He said the US has effective economic monitoring system despite a liberal economy. He said budget deficit will increase with recent devaluation and foreign debt burden has increased by Rs 1800 billion. He said import bill of petroleum products will increase energy rates upwards. He called for sincere efforts for revival of public confidence in government.

Dr Salahuddin Ayubi said political situation affects economic situation so that PML-N, PTI and PPP leaders should make a policy to avoid such situation in future. He called for giving confidence to exporters to increase exports while imports should also be controlled. He said current economic situation is leading towards another IMF bailout package.

Irfan Elahi said reforms were required to reduce petroleum products’ prices. He said increase in furnace oil will directly impact on industrial production cost and affect industries, increase unemployment and lawlessness.