ISLAMABAD: The Pakistan Economy Watch (PEW) on Monday said devaluation will increase the burden on poor, increase foreign debt and liabilities while boosting the profit for some of the influential sectors.
Erosion in the exchange rate to the tune of 9.4 per cent in just three months will hit man on the street and damage education, health, and the security environment, it said.
The devalued rupee is to take a toll on the economy while it is to improve the profitability of many influential sectors including textile, oil and gas and IPPs, said PEW’s President Murtaza Mughal.
He said that increased price of locally manufactured and imported goods will trigger smuggling and tax evasion helping the black economy to expand.
Repeated devaluation is in conflict with the claims of the government that the economy has been revived through tireless efforts, he added.
Murtaza Mughal said that the claim that an eroded rupee will boost exports, needs some verification, as imports and more than double of the exports, can nullify the impact of the move.
