ISLAMABAD: October 3, 2022: The government may withdraw a facility granted to Afghanistan to allow it trade with Pakistan in Pak rupee.
Sources told NEWSMAN that the PTI government had allowing trade to Afghanistan with Pakistan in PkR and since its start it was causing $ 2 dollar addition burden on the national economy per month and the same was a major cause of exerting pressure of the local currency to lose value against US dollar.
The rupee is off and on losing its value vis a vis US dollar in domestic market and in Miftah Ismail’s times it touched all time low level, putting Pakistan’s economy in a danger zone. The same factor stoked inflation to all times high in Pakistan’s 75-year history in recent months that made the masses lives miserable.
Forex Association of Pakistan (FAP) has raised the issue of Afghanistan trade with Pakistan in local currency with Finance minister, Ishaq Dar, recently and proposed him to either withdraw this facility altogether or introduce a battering system to have a win, win situation in trade for both countries.
FAP chairman, Malik Bostan Khan told NEWSMAN on Tuesday by phone from Karachi he has telephonic conversation with Finance minister, Ishaq Dar, on current volatility in domestic currency market and suggested him to reconsider the decision of the last government that allowed Afghanistan to trade with Pakistan in Pak Rupee. He said “ The Finance minister has given a serious thought to his proposal and hinted at reviewing the decision of Afghanistan trade with Pakistan in Pak Rupee.
Mr Bostan Khan presented statistics to the Finance minister, which suggested that Pakistan is taking a hit of $ 2 billion per month due to this impractical window given to Afghanistan and it was one of major reasons to stoke dollar value against the rupee in local currency market.
He said “ Pakistan imports in US dollars and then exports the same goods to Afghanistan in Pak Rupee and as long as this equation remains in place the rupee in terms of value to a US dollar will remain under pressure”.
Pakistan is facing unprecedented economic crisis and its volatility on economic front has risen in post flood times. It can not afford to go along with impracticable window like given to Afghanistan for trade in local currency when its forex reserves are depleting fast and its facing a looming risk of default on its debt payments liabilities. The government should follow a san approach and take some new route which could bring ease for both Afghanistan and Pakistan without hurting any one of the two stakeholders.