Korangi Association of Trade and Industry (KATI) President Salman Aslam has expressed concern over the high exchange rate of the dollar in the open market and interbank market. He said that the rate of the dollar had reached a record high in the history of the country, leading to rising inflation and unemployment.
President KATI said that the increase in prices due to supply and demand is not justified. If the demand for the dollar increases, the value of the dollar may increase but the increase in supply does not show any decrease in prices which is a matter of concern. He said that the dollar could be allowed to float freely in the market to a certain extent. The dollar did not fall, nor did importers benefit from the increase in the value of the dollar. He appealed to the Prime Minister to make efforts to devalue the dollar and to convince the IMF that the Pakistani economy could not afford further appreciation of the dollar.
KATI President Salman Aslam said that dollars were also being smuggled from Pakistan to Afghanistan, which has been largely curtailed by the government with the increase in border security. The rise has also alarmed industrialists.
He said that the prices of raw materials have also gone up while the industrialists are facing difficulties in fulfilling the import orders. Salman Aslam further said that according to the data released by the SBP, the foreign exchange reserves increased last week. Besides, record remittances were also sent by Pakistanis abroad while the loans were not repaid. However, the dollar’s rise to record levels is a cause for concern. He hoped that the dollar would depreciate in the coming days due to financial support from Saudi Arabia.
President KATI appealed to the government to take all possible steps to keep the dollar stable for economic stability.
