KARACHI: Korangi Association of Trade and Industry (KATI) on Wednesday expressed serious concerns over massive fall in rupee value and depleting foreign exchange reserves.
In a statement KATI President Salman Aslam said the dollar value had gone above Rs190, a decline that started before Eid has increased economic hardship.
The government is facing hardship at two fronts, first, the dollar value increase, and second reduced foreign exchange reserves are alarming.
Aslam said that the amount the official foreign exchange reserves of the State Bank of Pakistan (SBP) fell to $10 billion, which also included an amount of $3 billion of Saudi Arabia. He said that government cannot spend the deposited aid to Saudi Arabia, and payment of three months import bill seems difficult.
KATI President further added that government has to manage any further bailout package from friendly countries on an emergency basis. “Even receiving IMF tranche of $1 billion is still insufficient to reduce the difficulties.”
At the moment the country needs a large bailout package, which immediately released the pressure on reserves and the Pak Rupee.
Salman Aslam said that negotiations with the IMF must be finalized and efforts to get more cooperation from countries close friends of Pakistan.
He further said that all the resources of the government to avoid bankruptcy will be utilized, to support the economy.