Policymakers who consider continued depreciation in the exchange rate as a solution of economic problems are mistaken thus it should be stopped immediately, a business leader said Wednesday.
Repeated rounds of depreciation are damaging the economy and the masses which should be stopped immediately, he said.
The nontechnical officials occupying important positions in the State Bank of Pakistan (SBP) should be removed immediately, said trade leader and former Senior Vice President of ICCI Malik Sohail Hussain.
The economy is going astray while masses and the business community is wandering in the dark with no ray of hope in sight as a further drop which would prove lethal cannot be ruled out, he added.
Talking to the business community, Malik Sohail Hussain said that economy can never be stabilized when the currency is kept highly unstable resulting in widespread anxiety.
Erosion in the exchange rate has not only increased the cost of imports but also added to the problems of the export sector which imports much raw material which is getting costly.
The full year import of cotton for the most important export sector of textiles is to surpass one billion dollars hitting exports.
He said that the country is consuming 1.2 billion dollars per month which can be reduced by controlling unnecessary imports but the issue is ignored.
The fourth round of depreciation will follow hike in petroleum prices, inflation, and contraction of the economy and unemployment which will add to the difficulties of the masses.