KARACHI: The currency dealers are foreseeing major slide in dollar value in Pakistan in coming weeks as the government is taking a number of measures to set aside pressure on the rupee. The US dollar has already shed around Rs 5 in the last one week on account of only one corrections made by the government in form of revising upward the prices of petroleum products.
Pakistan Currency Exchange Dealers Association chairman, Bostan Khan, spoke to NEWSMAN on the currency market trend. He was upbeat that the corrective measures like rationalizing of petroleum product prices have already shown positive result in appreciation of the rupee and in coming days the rupee will make quick and considerable gain against US dollar. He said “ I see major appreciation of t he rupee value and it may pull down the US dollar value down to 180 to a dollar in next two to three weeks.
The rupee was continuously under pressure and shedding against US dollar due to capping of the petroleum products prices . It also shed value on speculations of further downslide that prompted exporters mot to bring processed of their exports. Pakistani exporters, as per rule, get 120 days to bring back proceeds of their exports, but foreseeing more slide of the rupee they are following wait and see strategy in bringing exports proceeds to Pakistan.
The State Bank of Pakistan (SBP) has recorded 50 % less proceeds of Pakistani exports as compared to routine level and its as a result of exports’ withholding of dollar strategy of their exports.
With holding of proceeds against exports is against the interest of Pakistan. Pakistan’s forex reserves are depleting fast due to payments of its liabilities against foreign loans and its one of the basic reasons of depreciation of the rupee against dollar in recent weeks. The rupee depreciation has put Pakistan’s economic sovereignty. Although the government is taking different steps like banning imports of luxury items and revision in the prices of petroleum prices and other such corrective measures are in the pipeline but withholding of dollars by exporters against their exports proceeds is not only irresponsible but also against the national interest.