Kati sees high inflation amid rupee depreciation

KARACHI: Korangi Association of Trade and Industry (Kati) President Salman Aslam has said that inflation is imminent owing to a constant fall in the value of rupee, a statement said on Wednesday.

The political instability has cut off domestic and foreign investment, which is a matter of great concern, he added.

The Kati president said that the value of the dollar has been continuously rising which has made the local rupee one of the worst currencies in the region while raising fears of a severe surge of inflation in the country.

Aslam said that the value of the dollar has reached a historic high of Rs186 which is detrimental to the economy, adding that the countries whose currencies had depreciated so fast in the world were on the verge of collapse and those governments have failed to rebuild their economies.

He urged that in such a case, it becomes the responsibility of the State Bank of Pakistan (SBP) to intervene, realising the gravity of the matter and stopping the diminishing value of the rupee.

The political leaders of the nation should also work for reconciliation for the sovereignty of the country and the nation instead of political confrontation otherwise Pakistan cannot afford to face further economic crisis, he said.

Aslam further added that the historical rise of the dollar and the economic crisis are hurting trade and it has become very difficult for exporters to compete in the international markets.

The sovereignty of Pakistan should not be compromised and the economy must be saved by finding immediate solutions to the problems, he said, while appealing to the SBP Governor to play his role in preventing rupee depreciation on an emergency basis.