Rupee emerged as worst performer on global index

Lahore : The recently-adopted exchange rate policy is imperfect at best which has started malfunctioning resulting in economic losses and increased uncertainty among masses and the business community, a business leader said Wednesday.

The should be a limit to the erosion in the exchange rate so that masses can be saved from looming flood of inflation, said Atif Ikram Sheikh Chairman FPCCI Regional Committee on Industries.

He said that retreat of the rupee is damaging the economy and the masses while it will force millions more to live below the poverty line.

The profiteers are cashing on the opportunity as the dollar has jumped by seven rupees in three days while the State Bank has decided to remain silent on the issue which is frustrating.

Atif Ikram Sheikh said that those who accepted the demands of IMF to devalue local currency should have also considered the national interests as the fragile economy facing twin deficits cannot withstand such massive shocks.

He noted that masses will have to brave a new wave of inflation while the rising energy prices in the international market will add to the pressure on the economy, he said, adding that fall of rupee will increase the prices of some items up to 20 percent.

Sheikh said that State Bank should not delay an announcement of the exchange rate otherwise imports of many necessary items would be deferred resulting in another crisis as the rupee has already emerged as one of the worst performers on the global index.

The economy has been stressed by widening deficits and declining foreign-exchange reserves which prompted investors, economists and the IMF to call for devaluation but the business community believes that the demand of the IMF was heard.