SBP governor’s statement a cruel joke: Rabbani

ISLAMABAD: PPP central leader Senator Mian Raza Rabbani has termed the statement of State Bank of Pakistan (SBP) governor about depreciation of the rupee a ‘cruel joke’ with the people of Pakistan.

Expressing his concerns over depreciation of the rupee against the dollar, he demanded the government take the parliament and the people into confidence on the IMF negotiations. “The US dollar has crushed the local currency, as a consequence the foreign exchange reserves of the State Bank have also started falling sharply. This will further weaken the rupee,” he said.

Senator Rabbani said State Bank reserves plunged by $1.64 billion to $17.492 billion during the week ending on Oct 15, from over $20 billion in August, as per the State Bank’s figures. “This decrease in the reserves is mainly due to external debt repayments and in this context the statement of the governor State Bank that depreciation of the rupee is beneficial is a crucial joke with the people of Pakistan,” he said.

He said the K-Electric was demanding a further increase of Rs3.45 per unit additional fuel cost from electricity consumed in September. He said the government was considering a further increase of 35pc in the gas tariff to meet the IMF conditionalities.

Raza Rabbani said the prices of essential commodities including ghee, atta and sugar have touched an all time high. “Whereas the prices of vegetables are moving out of the reach of the common man,” he said.

He said the common man pays all his taxes when he buys essential items, whereas the government was giving tax relief in one form or the other to big businesses and the industrial class.