Pakistan Business Forum Urges Govt to Strengthen Pakistani Rupee Against US Dollar

Pakistan Business Forum (PBF) President Khawaja Mehboob-ur-Rehman has urged Finance Minister Muhammad Aurangzeb to takes immediate and decisive steps to strengthen the Pakistani rupee.  In a letter, Rehman highlighted the efforts of the minister to stabilize the country’s economy. However, he said that the PBF remains concerned by several persistent challenges that have yet to see tangible improvements.   It highlighted that despite the successful launch of another IMF program, the Pakistani rupee has failed to appreciate against the US dollar, fluctuating between 277 and 279. The value of the rupee is a critical indicator of our nation’s economic health, and it continues to be a major concern for both the general public and the business community.  The letter stressed that it is imperative that the government takes immediate and decisive steps to strengthen the Pakistani rupee. Without a stronger rupee, efforts to alleviate financial pressures on the citizens, especially the business community, will remain ineffective.  “Furthermore, the soaring electricity and gas bills in 2024 have placed immense strain on the people of Pakistan. As we look ahead, it is crucial to address these challenges comprehensively,” PBF said.  The letter said that on the agricultural front, farmers continue to face extreme hardships, with many unable to recover their production costs. This issue has far-reaching consequences, including reduced agricultural output and concerns about next year’s wheat harvest. Currently, wheat has been sown over just 12 million acres in Punjab, well below the target of 16.5 million acres. These challenges signal the urgent need for a fair and sustainable cost-of-production mechanism.  Moreover, the persistent challenges such as inflation, political instability, rising fuel costs, high taxations and ineffective trade policies remain critical concerns.  The letter said that the PBF believes there is an urgent need for the formulation of a Charter of the Economy that is supported by broad political consensus and civil society. Such a charter would outline the necessary reforms and policies to stimulate economic growth, reduce inequality, create jobs, alleviate poverty, enhance food security, and promote human development.  Looking to India’s economic journey since 1989, we can see the benefits of sustained reform and political stability. India has attracted nearly $500 billion in foreign direct investment (FDI) in the last nine years more than it received in the entire period since its independence. This serves as a reminder of the importance of long-term, consistent policies in driving economic success.  A Charter of the Economy should be developed with broad-based political agreement on issues such as public spending, taxation rates, and monetary stability. It is in the interest of all major political parties to come together and develop a consensus on these policies for the betterment of the nation, it added.  The PBF urged the minister to announce a clear and actionable roadmap for 2025. This roadmap should address the key challenges Pakistan faces, including currency instability, rising energy costs, and inefficiencies affecting businesses.   It is vital that a comprehensive strategy be put in place to create an enabling environment for private sector growth, drive economic recovery, and improve the standard of living for all Pakistanis, the letter added.