Govt slammed over falling currency

[Naveed Yaseen]

KARACHI: Karachi Chamber of Commerce and Industry has criticised the government for not adopting adequate measures to control falling rupee which is now touching Rs74 against US dollar.

The KCCI’s office bearers said the country’s economy is import-based and like exports, its imports are highly concentrated in a few items like petroleum products which retain a huge share of 24 per cent, capital goods and machinery 30 per cent, raw material 16 per cent and food items 7 per cent which account for about 77 per cent of total imports, the press release said.

The rupee depreciation would further scale up imports bills and cost of indigenous goods and hence eroding a competitive edge both in local and international markets, it said.

The export-oriented industry of the country is mainly dependent upon imported constituents to produce exports goods and thus the devaluation of rupee would not work to boost exports, it added.

They therefore, proposed that the central bank should come forward aggressively to curb rising demand for the dollar by intervening in the market for support for the local currency.

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