Trade Development Authority of Pakistan criticised for proposing 10 percent devaluation of rupee
Islamabad, September 03, 2015 (PPI-OT): The Pakistan Economy Watch (PEW) on Thursday condemned proposal by TDAP to devalue currency by ten percent to boost dwindling exports and print currency to finance deficit. The TDAP chief advised the Senate Standing Committee on Commerce chaired by Senator Shibli Faraz that government should devalue currency and print currency which is against the national interests.
Exports have gone down because of the host of reasons including performance of TDAP for which masses cannot be punished, said Dr. Murtaza Mughal, President PEW. He said the deficit should be financed by increasing tax base and not printing currency which will sink country into inflation. Dr. Murtaza Mughal said that government should ignore the proposal of TDAP chief and reduce cost of doing business, revisit energy tariff, rationalise taxes, pay of refunds and bring fundamental changes in TDAP.
Devaluing rupees will make imports costly which are double than the exports, it will increase size of foreign debt and interest being paid on loans. Moreover, devaluation will trigger inflation, increase price of fossil fuel, edible oil machinery etc. which will hut every citizen of the country. Dr. Murtaza Mughal said so far that fall of rupee has increased foreign debt by 248 billion rupees and it will go up by almost one trillion if rupee is allowed to slide to Rs 115.5o against US dollar as proposed by Mr. Muneer. Interests of whole nation cannot be compromised for the benefit of some.
For more information, contact:
Dr. Murtaza Mughal
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad