HCCI urges SBP to come up with clear policy on dollar’s availability

HYDERABAD: President Hyderabad Chamber of Commerce and Industry Adeel Siddiqui has expressed concern over US dollar’s continued upward march and Pakistani rupee’s depreciation, saying State Bank of Pakistan (SBP) should come up with a clear policy on dollar’s availability.

Siddiqui feared that food security could become serious issue in the country if with dollar keeps attaining new heights considering the fact that edible oil import is second largest import bill after crude oil.

He said that Pakistan was already going through a severe energy crisis and crude oil has a major share in electricity production which was imported. He wondered whether such energy production was sustainable in view of present economic condition as well as currency devaluation. He said it was worrying industrialists.

In a statement issued here Monday he feared that commercial banks are earning profit in the garb devaluation of Pakistani rupee and said if SBP doesn’t have dollars then Pakistan is all set to face food security issue.

He observed that banks were not quoting dollar’s rate by Monday morning and when interbank rate was opened it was quoted at Rs213 and by noon it rose to Rs214. He said that traders who had opened their letters of credit (LCs) would face serious issues if dollars were not really available because they have to make pay in dollars to their foreign counterparts.

He said that edible oil import bill would keep increasing in such situation. HCCI Chief further said that government was already importing grain for domestic consumption because Pakistan didn’t come up with required wheat production. He regretted such a bleak economic picture that has worried every common man. He said that industry that was purchasing raw material would also be jeopardized and its survival would become difficult.

He said that since Pakistani rupee continues to record devaluation everyone fears whether Pakistan is heading for default like Sri Lanka. “Pakistan government should expedite its process of negotiations with International Monetary Fund as soon as possible to stabilize economy”, he said. Secondly, he advised, the government should reach out its time tested friends to seek monetary assistance for fixing economic issues.

Copyright Business Recorder, 2022