(December 16, 2019)
President Pakistan Businessmen and Intellectuals Forum (PBIF), President All Karachi Industrial Alliance (AKIA), Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister, Mian Zahid Hussain on Monday said Pakistan has paid a heavy price for exchange rate volatility which is not stabilizing.
Exchange rate stability has helped investors take a sigh of relief as they would be in a better position to take critical decisions for which Prime Minister Imran Khan deserves the credit, he said.
Talking to the business community, the veteran business leader dollar has sold for Rs 164 during the current government while now it is being at Rs 155 which is a sign of stability.
The former minister noted that the central bank should consider softening of monetary policy to trigger growth. He noted that everything is not bad as a lot is also good on the economic front.
The policymakers have realised that they have devalued rupee a lot but now they have decided not to interfere and leave it to the market forces.
He said the current account deficit has been controlled, imports have been reduced, and confidence of investors is returning due to some fundamental changes on the fiscal front.
Some foreign companies have started thinking about investment in Pakistan while investment in rupee convertible account has surpassed 1.3 billion dollars.
However, he noted that more should be done to control inflation and unemployment which reforms should be initiate din power and electricity sectors to improve the overall situation and tackle mass unrest.
The situation is improving but it is too early to declare a victory, he said adding that Pakistan is facing threats like FATF, tensions with India, tensions between Iran and Saudi Arabia which can result in massive oil price hike for which proper planning and execution is needed.
