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Rupee devaluation to have negative impact on industry
Lahore—The present devaluation trend of the Pak
rupee is creating panic among trade and industry quarters in the
country. PPP leader Samiullah Durrani in a statement here Friday
said that this trend must be arrested immediately otherwise it will
be disastrous for the national economy, and asserted that the State
Bank of Pakistan is not playing its due role to control the
situation. He said the ramifications of devaluation will negatively
impact the industry as well as discourage foreign investment in the
country’s stock exchange. Petroleum prices will escalate further,
while prices of imported edible oil will be increased and overall
exports will be affected due to higher cost of production in the
wake of increased utility rates, he said.
Devaluation will discourage foreign investment in the industrial
sector owing to reduction in profits in dollar terms, he said,
adding that the prices of importable manufacturing raw material will
also increase, which will also affect our export oriented industry.
He said that foreign national debts will also increase in rupee
terms, while the overall inflationary pressure could even effect the
law and order situation, he cautioned.
Durrani suggested that trade deficit must be narrowed in order to
arrest the current devaluation, adding that the coalition government
should increase the rate of import duty on foreign assembled
vehicles, which is the largest single source of current huge trade
deficit, he added.
He also advised that more non-traditional goods like pharmaceutical
drugs/medicines should be promoted for export, as this segment has
not been properly tapped. Compared to India we are far behind in
this sector, while our pharmaceutical products are equally good in
price, economy and efficacy, he maintained.—APP
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