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Federal Finance Minister Ishaq Dar has clearly asked speculators to refrain from making wild speculations in the forex market "or be ready to face the music for causing huge loss to economy for their petty gains." He was speaking at the Lahore Chamber of Commerce and Industry.
According to him, a handful of people have taken the whole economy hostage. Now the finance minister is required to go beyond making ceremonial statements by awarding exemplary punishment to those who are inflicting severe harm on country's economy through artificial distortions in the market. But Dar must not lose sight of the valuable role played by 'speculators' who absorb excess risk that other participants do not want, and provide liquidity in the market when no participants are available for buying or setting.

Copyright Business Recorder, 2013

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