LAHORE: Lahore Chamber of Commerce and Industry President Kashif Anwar extended his congratulations to Prime Minister Shehbaz Sharif, Finance Minister Ishaq Dar and the Ministry of Finance for their successful negotiation of a $3 billion deal with the International Monetary Fund (IMF).
Kashif Anwar emphasized that while the funds may not be disbursed all at once, the agreement would dispel speculations of a potential default, thereby putting an end to the detrimental effects of rupee devaluation, brain drain and Capital drain.
In light of this positive development, Kashif Anwar urged the authorities to focus on two key areas for economic reform. Firstly, he called for efforts to expand the tax base, which would increase the government’s revenue and contribute to overall economic stability. Secondly, he stressed the need to address the disparity between the rates of the US dollar in the open market and the interbank market. This discrepancy has created challenges for businesses and has had a negative impact on the economy.
Expressing his opinion on the ideal exchange rate, Kashif Anwar suggested a range of 175 to 200 rupees per dollar. He argued that such a rate would have multiple benefits for the economy. Firstly, it would help to reduce inflation, which has been a pressing concern in Pakistan. Secondly, it would contribute to lowering the high interest rates, which currently stand among the highest in the world. This reduction would not only alleviate the burden on borrowers but also make the cost of doing business more affordable.
Kashif Anwar further elaborated on the potential positive outcomes of this exchange rate adjustment. He explained that it would lead to a decrease in the cost of imported goods, particularly fuels and raw materials. This, in turn, would have a cascading effect on the prices of finished goods, resulting in a more affordable and competitive market.
