KARACHI : August 23: The US dollar is on rampage again in the local currency as it gained another one rupee against the rupee in the first session on Tuesday . With an increase of one rupee US dollar traded in interbank at Rs 217.60 . It had closed at Rs 216.60 in interbank trading on Monday.
During the last two days, US dollar appreciated by Rs 3 plus in the local market , putting the rupee on the reversal again. The rupee had made a big comeback against the US currency in the first two week of the current weeks but it started to lose massively from the last working day of the last week.
Meanwhile, US currency also jumped up in the open market. It traded at Rs 221 (buying) and Rs 223 (selling) in the open market . The US currency had dropped down to Rs 208 from around 250 in the open market in the first two weeks of the current month. The currency market experts were expecting further depreciation of US dollar, but these expectations remained abortive and the US currency took upward trend again in the currency market.
Forex Association of Pakistan (FAP) chairman , Malik Bostan Khan, attributed appreciation of US dollar to a number of factors. Talking to NEWSMAN , Malik Bostan Khan said the banks of buying dollars from the market and this spree is one of many factors which have played to push the US currency up again. According to him lifting of ban by the government on import of luxury items is another reason behind appreciation of US currency in the local market.
He said the importers whose consignments were held up at ports are also paying in dollars to get their consignments cleared from the ports.
As a result of ban on luxury items in the budget 2022 thousands of consignments of imports had stuck up at the local ports . Now after four months, Miftah Ismail, has announced to lift ban on import of luxury items like cars, mobile phones, home appliances etc. The ban on import of luxury items has damaged Pakistan’s more than anything else. One, it created shortage in the local market of hundred of thousands of items and provided a golden opportunity to the stockiest to sell their available stocks at much more higher prices and make windfall profit. Second it forced many industries to shut up their operations due to non-availability of their raw materials or parts.
Miftah Ismail has swung pendulum to another extreme by increasing duty on luxury items irrationally. For example he raised duty on import of luxury cars by 600 %. Can someone tell this finance minister that such a high duties and surcharges will serve the purpose of smugglers only who will use Afghan transit and other available illegal channels to bring luxury items into Pakistan without paying any duty. Miftah Ismail is either serving purpose of some selected groups by increasing duty in irrational manners on import of luxury items or he lacks sense to understand that such decisions will only be counterproductive to hurt Pakistan’s economy .
Since April last when Miftah Ismail a toffee exporter took over as federal Finance minister he has taken unwise decisions. His decision of reversing tax on retailers on the basis of consumed electricity is one example. Other example of his poor understanding of financial matter is repeated upward revisions in the rates of utility bills and petroleum products without taking into consideration how the poor segment of the society would pay these inflated bills. Quick surge in power rates will add to electricity theft again. It will not serve any purpose of increasing the revenue of the government. Miftah Ismail is blindly following International Monetary Fund (IMF) conditions . He lacks a vision to take decisions which are needed at this crucial time to steer the economy of Pakistan out of current mess.
His poor understanding of the financial issues have ditched Pakistan Muslim League Nawaz (PMLN) which is reeling under burden of his unwise decisions and facing wrath of the public. Its one example is on-going protest of the public against inflated bills of electricity. PMLN will pay for his short sighted decisions in the next general elections .