ISLAMABAD : Jan 30,2023: All Pakistan Hotels Association vice chairman , Mian Akram Farid has said that the declining foreign exchange reserves of the State Bank of Pakistan (SBP) which have reduced to the lowest level of about 3.7 billion dollars has created an alarming situation for businesses besides posing serious threat to Pakistan’s economic sovereignty.
Addressing an emergent meeting of All Pakistan Hotels Association said there is a lot of concern in the business community over US dollar soaring high which has crossed Rs 265 mark in the open market. Mian Akram said ‘What was already difficult to sustain has become even more difficult due to the on-going economic crisis.
He added that the manufacturing sector, which was already under pressure has a direct impact on exports. He maintained that the depreciation of the rupee has eroded the purchasing power of the people . Mian Akram Farid added that a sudden increase of Rs 35 in petrol and diesel prices will increase the cost of transportation, which will greatly affect the construction sector, along with the tourism and hotels industry.
He expressed fear that if the government does not take immediate corrective measures, Pakistanis life will suffer from disastrous consequences. He said that strong foreign exchange reserves of any country bring confidence in local and foreign investors, but the continuous decline in Pakistan’s foreign exchange reserves is shaking the confidence of the business community and investors. He said unusual fall in the value of the rupee will not only lead to a new wave of inflation, but after the increase in interest rates, industrial activities will also be affected due to the increase in the cost of loans.
Mian Akram Farid added that the life of a common man has become miserable. He said that due to the rise in interest rates and the falling value of the rupee, it has become difficult to run the industries. Mian Akram Farid maintained that containers full of imported goods are piling up at Pakistani ports and exporters are unable to make payments due to unavailability of dollars. Mian Akram Farid noted that various factories including textiles are closing down due to shortage of raw materials and energy problems.
He said we demand that the government should take corrective measures to bring down the energy cost to make sure that the industrial sectors including the construction industry do not suffer any setback .