Dollar retreat great achievement of the Govt
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Strengthening rupee to improve overall economic situation
The Pakistan Economy Watch (PEW) on Wednesday said continued retreat of the US dollar is one of the great achievements of the government which will help stabilise economy, tame inflation and restore investor’s confidence.
The rising rupee will further push the US dollar down to set new records but stabilising exchange rate which has remained volatile since long will be a test for the economic managers, said Dr. Murtaza Mughal, President PEW.
It appears that the finance minister who recently claimed to bring dollar back at Rs98 is fulfilling his commitment which will cut oil import bill, bring down prices of imported commodities and have a positive impact on every person in Pakistan.
Dr. Murtaza Mughal attributed the strength of rupee to excess supply, ban on gold import since January, encouraging IMF reports, Chinese decision to invest billions in Pakistan, award of GSP plus, expected sale of next generation telecom licences, positive interference by SBP and 11 per cent hike in remittances.
He said that exports have not been increased to the satisfactory level which is must to maintain the trend. Terming the dramatic fall of dollar and its reducing demand a good omen for the economy, he said that dollar should remain under pressure despite hue and cry by the exporters.
Dr. Mughal said that government should keep a hawk’s eye on speculators, currency dealers, some banks who have been playing havoc with the economy for personal gains.
The government must encourage the deprecation of dollar below Rs 98 in the national interest, he demanded.
