FPCCI condemns SBP governor’s statement on rupee depreciation

Staff Reporter BOL News

23rd Oct, 2021. 10:22 am

Image: File

KARACHI: The Federation of Pakistan Chamber of Commerce and Industry (FPCCI) has condemned the statement issued by State Bank of Pakistan Governor Dr Reza Baqir about depreciation in the rupee value and how it is benefiting the overseas Pakistanis and termed it an insensitive, irresponsible and fictitious statement.

FPCCI president Mian Nasser Hyatt Magoo said the business, industry and trade community of Pakistan demands a better, more competent and responsible leadership at the State Bank of Pakistan.

Maggo said: “Now we know that why the rupee has lost so much value in such a short span of time, as the leadership at the SBP has exposed itself through irresponsible statements and poor performance in maintaining the exchange rate.”

There is no economic sense and justification in the statement that Pakistan has gained around $3 billion due to the recent depreciation in the rupee value, he said, adding that the ground realities are diametrically opposite than that of assertions by the SBP chief.

Maggo also emphasised that the monetary policy should be devised in a manner to promote economic growth and bring stability in the economic indicators; however, the monetary policy has failed to achieve any of the above.

Nasir Khan, vice president of the FPCCI, said that the unrelentingly depreciating exchange rate is playing havoc with Pakistani society and the economy.

This is unsustainable and Prime Minister Imran Khan should immediately intervene in the matter in the larger national interest and should take measures to check the slide in the rupee value.

The government must address the domestic and imported inflation through its monetary and fiscal policies; instead of making lame excuses.

Maggo said that hardly any justification exists in continuation of the SBP governor. In fact, ethically speaking, he should prefer to resign himself in view of the totally indefensible policy structure given by the central bank.

He also demanded an inquiry into the conduct of the SBP in recommending sweeping tax concessions for the non-resident companies to attract investment in the government debt at very high rates to favour certain foreign commercial banks.

The same conduct of the SBP governor is part of the history archives, when he was in Egypt, he added.