Former President of Islamabad Chamber of Commerce and Industry (ICCI) Dr. Shahid Rasheed Butt has said the new wave of sharp depreciation of rupee against the dollar and other currencies has exposed the economic policies of the government.
In a statement issued here on Sunday, he said that dwindling production capacity, unreasonable increase in exports, rising deficit, increasing inflation, growing uncertainty and over-reliance on remittances have contributed to this situation.
Shahid Rasheed Butt said that the unabated increase in the deficit during the first quarter has touched the mark of 4.1% of the GDP, which is well above the central bank’s estimates.
Matters with the IMF are not being finalized as foreign exchange reserves have shrunk by two billion in the last one month, he added.
The steps taken by the SBP to keep the rupee stable have proved to be of no use, the former ICCI President said, adding that the announcement of a three billion loan from Saudi Arabia has not been implemented and even if this amount is given to Pakistan, its effects will be temporary.
He noted that until the issues are settled with the IMF, Pakistan will not be able to borrow dollars from the global bond market, which will further aggravate the situation of the country’s economy.
The business leader said that there were alarming reports about wheat crop which was not being taken notice of and that could further worsen the food security situation in the country.
