Senate Body takes strict notice of Pak rupee’s depreciation
'Pakistan Times' National News Desk

ISLAMABAD: The Senate Standing Committee on Finance Wednesday took strict notice of the depreciation of Pak rupee against greenback and directed Governor State Bank of Pakistan to intervene in the matter.

The committee presided over by its Chairman Senator Ahmed Ali noted that due to the rupee’s depreciation against the US dollar the country could face a serious economic turmoil.

Highlighting the impact of rupee’s fall against the dollar the Chairman said, “Depreciation of one Pak rupee against the US dollar enhances the borrowing of Rs. 40 billion to the country, while Pak rupee has depreciated by six rupee against the US dollar, thus causing a borrowing burden of Rs. 250 billion.”

The former Advisor to Prime Minister on Finance and former Caretaker Finance Minister Dr. Salaman Shah also attended the meeting.

Senator Ahmed Ali said that the money exchange companies were moving the value of Pak rupee against the US dollar on their own will.

He also took strict notice of the current bearish trend in the stock markets of the country and urged the State Bank of Pakistan to take steps for correcting the situation.

Speaking on the occasion Dr. Salman Shah defended the policies of previous government and said that no fudging of figures was made during the preparation of the last budget. He said that the previous budget was prepared keeping in view the then prevailing economic situation.

He said that instead of criticizing one another we should work together for the betterment of Pakistan and its people and encourage foreign investments to achieve this objective.

He said that last year, the country attracted a foreign investment of dollar 8 billion adding that, the debt burden was reduced from 100 per cent to 54 per cent.

Secretary Finance, Farrakh Qayyum on the occasion said that the government had not imposed any tax on petrol, rather it was providing a subsidy of Rs. 22 per liter to oil companies adding that, due to this subsidy the government would have to bear a budgetary loss of Rs. 150 billion.

He said that certain measures would be taken in the next budget to check increase of fiscal deficit and to bring it down to 6.5 per cent.

Senator Anwar Bhinder on the occasion stressed the need to boost agricultural products, which he said would help strengthen the country’s economy.He also suggested to bring down the prices of fertilizers and other inputs to achieve this objective.

Senator Professor Khurshid Ahmed called for holding of similar meetings in future and said that the committee’s suggestions should be incorporated in preparation for the next budget.

Senator Nisar A. Memon said that the super spike due to unprecedented hike in prices in international market could occur, which he added could also affect the domestic market. He called for adopting a stong strategy to meet such challenges.

The meeting discussed the provision and price situation of petroleum products and edibles.

The meeting was attended by Senator Haroon Khan, Senator Pari Gul Agha, Auditor General of Pakistan, Tanveer Ali Agha, Chairman FBR, M. Abdullah Yousuf and senior officials of Ministry of Finance.●