Former President of Islamabad Chamber of Commerce and Industry (ICCI) Dr. Shahid Rasheed Butt on Wednesday said erosion in the value of the rupee is revealing the real economic situation and the rupee will continue to weaken this year if damaging policies were not changed.
Economic policies should be immediately tailored according to the national interests to avoid the approaching doomsday scenario, he said.
Shahid Rasheed Butt said that the dollar could hit the mark of Rs185 during the current year, but if the elite-friendly policies continued, the dollar could reach Rs200.
He said that the rupee will get some support if the IMF loan is restored but the effects will be temporary.
He said that the central bank has 17 billion dollars, but the rupee continues to depreciate because half of the foreign exchange reserves are based on borrowed money.
The hefty forex reserves have no effect on the value of the rupee and the continued devaluation of the rupee reflects the real economic situation, he said.
He said that the remittances are declining while exports are not growing as expected which is putting all the pressure on the local currency.
The government has doubled its spending in the last three years, while its reliance on loans has increased significantly, which is worrying.
The current government has borrowed $ 42billion from foreign sources in three years and will continue to do so this year as there is little chance of real reform in any sector.
Immediate review of all the economic policies is necessary so that they can be arranged according to national interests, he demanded.
