Kati concerned over declining rupee

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KARACHI: Business leaders of Korangi Association of Trade and Industry (Kati) have expressed concern over the recent depreciation of the rupee against the basket of foreign currency.

In a statement issued on Thursday, S M Muneer, patron-in-chief of Kati, Mohammad Zubair Chhaya, chairman and Mian Zahid Hussain, president of the All Karachi Industrial Alliance, have shown concern over the recent depreciation of the rupee against the dollar and other currencies.

They said that recent increase in the value of the dollar will have an additional burden of Rs45 billion in trade deficit.

Muneer said that the value of the US dollar has crossed Rs103 in the open market due to which an additional burden of Rs345 billion will be on the economy of the country and will result in price hike in consumer goods.

The foreign exchange reserves have come down due to which the economy has suffered badly and the situation will become unfavourable for investment, he said, adding that the government and the State Bank of Pakistan (SBP) should take immediate steps to improve the economy.

Chhaya said that the government should support exporters and encourage the expatriates living in the United States, Europe, Gulf states and other countries to transfer money through banking channels so that foreign reserves could improve.

Hussain said that due to reduction in foreign exchange reserves, it will be difficult to achieve economic targets and will increase inflation. Economic development in the country will be slow and the budget deficit and unemployment will be increased, he added.

Courtesy: The News

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