Site criticizes rupee devaluation

Staff reporter

Karachi

Saleem Parekh, President, SITE Association of Industry, Karachi, while commenting on the recent massive rupee devaluation by the Government of Pakistan, has said that in spite of the fact that we are in the free-fall basket of currencies, yet the currency is controlled by government through State Bank or directly through Finance Ministry.
If we are to act as per free-fall basket of currency, then we have to see that it has to fluctuate as and when the rupee appreciates or depreciates. In this manner fashion, when we do a massive devaluation of 8-9 rupees, it really disturbs the entire system and the inflation goes just unbounded and no strings can be attached to control the inflation in the local market.
He said that the industries are effected in the most severe manner as the raw materials suddenly becomes very expensive. Industries have contracts of sales locally and international for 6 months and sometimes they are even of more than 6 months. So there is remote possibility that one can get a price hike specially in the international market where you are covered under agreements with the buyers.

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