LAHORE: Amid dollar’s unprecedented flight, the Lahore Chamber of Commerce and Industry (LCCI) has called on the government to take immediate action to address the growing gap between interbank and open market dollar exchange rates, as well as to control the unregulated flow of dollars out of the country.
LCCI President Kashif Anwar explained the seriousness of the situation, stating that the widening difference between interbank and open market dollar rates and the unchecked flight of dollars are posing significant challenges to Pakistan’s trade, industry, and overall economic stability.
The LCCI President expressed concern that the persistent disparity in exchange rates for the US Dollar is negatively impacting various sectors of the economy. This issue has already resulted in a decline of more than $4 billion in remittances to Pakistan during the fiscal year 2022-23.
Anwar stressed the importance of exchange rate stability for Pakistan’s economy, especially in a time when the nation faces numerous economic challenges. He compared the exchange rate disparities in Pakistan with those in neighbouring countries, highlighting that the difference in the interbank and open market exchange rates in Pakistan is significantly higher than in India, Bangladesh, and the UAE.
Anwar called upon the government to intervene and direct the State Bank of Pakistan (SBP) to take concrete measures to reduce the gap between interbank and open market exchange rates. He emphasized the need for transparency and stability in the foreign exchange market and recommended the implementation of strict monitoring and control mechanisms to discourage speculative trading and ensure compliance with exchange rate regulations.
Furthermore, Anwar urged the SBP to enhance communication with stakeholders, including the business community, by providing regular updates on the central bank’s strategies and actions to address the exchange rate issue. The LCCI also expressed its willingness to collaborate with the Finance Division and the State Bank of Pakistan to develop a well-regulated and liquid currency market that can ensure efficient exchange rate mechanisms for the country’s economic growth and investor confidence.
