Pakistan Businessmen and Intellectuals Forum's (PBIF) president Mian Zahid Hussain has said that record fall in rupee's value as against dollar was `unfortunate' as it has impaired all the efforts made in the last two years for stabilising exchange rates. The PBIF chief said in a statement that the situation will force the government to borrow more to stabilise its foreign currency reserves.
"Export policy should have been adjusted to improve export competitiveness, leaving exchange rate unchanged," he added. He said that the currency dealers' act of selling dollar up to Rs 106.50 required intervention by authorities. "Devaluation will not support the exports as expected due to recession in the EU and hence the exporting industries should focus on cost reduction, skill development, value addition and up-gradation," he opined.
"Export sector has been addicted to subsidies, tax breaks, bailouts, and currency devaluation and as such the recent development will discourage its efforts to upgrade machinery, improve quality and find new markets. He said: "nation will pay the price for the government's wrong decision of appointing its `blue-eyed' persons as export managers and commercial consular."