‘Rising dollar ravaging importers’

KARACHI: Businessmen on Friday said importers of raw materials and commodities were racking up tremendous losses, owing to a continuously unstable exchange rate, which was also fueling inflationary fires at an alarming rate.

“Keeping exchange rate rickety and unstable is a recipe for disaster for any country’s export-oriented industries by,” said Mian Nasser Hyatt Maggo, President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in a statement.

“FPCCI is observing the inaction of the government and the SBP (State Bank of Pakistan) by not supporting the business, manufacturing, and trade industry of Pakistan hit by unprecedented exchange rate volatility, with profound concern.”

Maggo offered the government FPCCI’s support and consultancy for stabilising the uncontrollable exchange rate.

“The government needs to come up with an elaborate mechanism to protect the export industry; end uncertainty pertaining to IMF programme; make SBP play a proactive role with required competence and integrity; promote barter trade where applicable, and facilitate exploration of unconventional import markets and regions,” he added.

Nasir Khan, Vice President FPCCI, said the current wave of hyperinflation in food items was a direct consequence of the incompetent handling of exchange rate; otherwise, there would have some stability in the food prices.