TDAP slammed for proposing rupee’s 10% devaluationSeptember 2, 2015
KARACHI: The Pakistan Economy Watch (PEW) on Thursday condemned proposal by TDAP to devalue currency by 10 percent to boost dwindling exports and print currency to finance deficit.
“The TDAP chief advised the Senate Standing Committee on Commerce chaired by Senator Shibli Faraz that government should devalue currency and print currency. This proposal is against against the national interests,” said Dr. Murtaza Mughal, President PEW, in a statement issued from Islamabad.
Exports have gone down because of the host of reasons, including performance of TDAP, for which masses cannot be punished, said Dr Mughal. He said the deficit should be financed by increasing tax base and not printing currency as it will sink country into inflation.
Dr Mughal said that the government should ignore the proposal of TDAP chief and reduce cost of doing business, revisit energy tariff, rationalise taxes, pay of refunds and bring fundamental changes in TDAP.
Devaluing rupees will make imports costly, which are double than the exports, it will increase size of foreign debt and interest being paid on loans. Moreover, devaluation will trigger inflation, increase price of fossil fuel, edible oil machinery etc., which will affect every citizen of the country.