KARACHI: Yarn merchants have urged the State Bank of Pakistan (SBP) to stop the rupee depreciation against the US dollar otherwise it will make industry to continue business.
Chairman Pakistan Yarn Merchants Association (PYMA), Saqib Naseem and Vice Chairman Sindh Balochistan Region, Muhammad Junaid Teli, while expressing deep concern over the continuous depreciation of the rupee and the sharp rise in the value of the dollar, requested the Governor State Bank of Pakistan, Reza Baqir, to adopt effective strategies for stability of rupee.
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In a statement, PYMA office-bearers warned that rupee devaluation was going to have a deep impact on inflation as it would raise the cost of doing business, making Pakistani goods non-competitive in the export market and unaffordable in the domestic markets.
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They highlighted the negative effects of the rising value of the dollar on the country’s economy, especially business activities, and said that on the one hand, the relentless storm of inflation was in full swing. On the other hand, the continuous depreciation of the rupee and the high level of the dollar has led to a huge increase in the production cost of the yarn business and industries.
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PYMA office-bearers Said, “Raw materials are not available in the country as per the industrial demand, the industries have to import the raw materials from abroad in order to continue uninterrupted production activities. However, these days the soaring value of the dollar has put the business community in a difficult position, especially the production costs of SMEs have skyrocketed.”
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Saqib Naseem and Junaid Teli requested the Governor State Bank, Reza Baqir to prevent further depreciation of rupee and to prevent the dollar from appreciating, adopt strategies that reduce the cost of doing business. This will definitely boost trade and industry and create ample employment opportunities.
Otherwise it will be difficult to do business and run industries which will affect exports and also increase unemployment in the country.
