ICCI calls for ‘urgent remedial measures’ to stabilise exchange rate

ISLAMABAD: Islamabad Chamber of Commerce and Industry (ICCI) President Muhammad Ahmed Waheed has urged the government to strengthen the exchange rates in order to support the country’s businesses and economy.

Talking to APP on Saturday, he expressed dissatisfaction over devaluation of rupee against the US dollar post the spread of COVID-19 pandemic in the country.

He explained that the main cause of currency devaluation was the sudden shortage of dollars from the market as people had withdrawn investments from the stock market to purchase dollars.

“Some industries are importing 70pc raw material for manufacturing activities and a rise in dollar will further increase their production cost, which will make the industry and exports uncompetitive in the international market,” he said. “Trade and industrial activities are already suffering badly due to the virus issue, and a further fall in the value of rupee against dollar will completely jeopardize the survival of businesses.”

He called upon the State Bank of Pakistan (SBP) governor to take notice of the situation and initiate urgent remedial measures to bring stability in the value of rupee in order to safeguard the country’s economy.

The ICCI president noted that 25pc population of the country was living below the poverty line, and if the current [lockdown] situation continues, jobs of millions of people would come under threat.

He urged the business community and well-off traders to support needy people in the current situation and provide them with all necessities of the life.

“Local business and traders’ community and will fully support the incumbent government’s endeavours for economic growth in the country. Prime Minister Imran Khan had provided a much-needed relief to people by announcing a Rs15 per litre cut in the price of petroleum products. In addition, we also appreciate the government’s strategy to fight current challenge of COVID-19.”