Islamabad, Pakistan: The value of the Pakistani rupee continues to stabilize after a massive crackdown on smugglers and currency hoarders by the interim government with the historic support of civilian and military institutions.
Responding to questions of an informal survey conducted in Karachi, Lahore, Islamabad, Peshawar, Faisalabad, and Gujranwala forex markets and grain markets, traders and businessmen expressed their confidence over recovery of the market while believing that stabilization of currency was not artificial but rather purely a result of steps being taken by the interim government that had been demanded by the traders and businessmen.
“How can you stabilize business when over 60 percent of growth/production (edibles) is smuggled out of the country and when hard-earned US$ had been transferred out of the country through the black and grey market?”, questioned, Sheikh Amjad in Shahalam Market Lahore.
While talking to a news agency, Sattar Lodhi, a wholesale trader doing business in Akbari Mandi Lahore was of the view that Pakistan had limited land to grow grains and edible and over 40 percent of total production had been flying out of the country, creating a serious demand and supply gap therefore controlling the prices of almost everything was not possible. He claimed the huge smuggling had been going on with the connivance of government machinery. He believed that elected governments in the past had been compromised and an interim government was busting all kinds of mafias including smugglers, power and gas thieves, and currency black market. However, he added that it was possible due to the Chief of Pakistan Army COAS Gen. Asim Munir who is very clear about fixing issues Pakistan has been facing for ages.
Sawab Gull, a young man in his late 30s dealing in the forex market of Peshawar when asked to comment on the US$ situation in the city, stated that the value of the dollar is falling continuously and the dollar was trading at 275 rupees (On Tuesday) while it was early September touching over Rs.340 was available in the open market. He was of the opinion that the fall in the dollar’s value by around Rs 65 in over a month was certainly a historic and commendable government action made possible by its crackdown on illegal economic activities.
Sartaj Memon, who deals in the share market of Karachi since 1991, when asked to comment on the economic recovery of the country, stated that for the first time in six years, the Pakistan Stock Exchange 100 index reached its highest point with an increase of 272 points – and the index had reached 50000 points. When asked about the reason for this jump, he stated that traders and businessmen are (were) gaining confidence due to the crackdown on black markets, smugglers and same time the interest shown by GCC countries to invest in Pakistan coupled with news of investments from China are (were) some of very positive indicators. He was confident that the market would keep gaining provided that the government continued to fight back against economic terrorism that had been hurting the economic fabric of the country,
It may be mentioned that Pakistan and China have agreed to enhance exports to China by up to two $billion and China will establish a consortium in Pakistan under which China will export red chilies, meat, and other products from Pakistan. These are the same products that had been smuggled from Pakistan to Afghanistan without giving any financial support to Pakistan’s economy.
Economic activities of smaller cities and towns depend upon the buying power of the poor and lower middle class that is under the tremendous pressure of high prices of utility items
Qaisar Butt, a trader in Gujranwala when asked to comment on economic recovery was of the view that a significant reduction in the prices of petroleum products would surely ease the pressure on consumers and the situation would definitely help the market because markets are (were) empty and consumers had been buying only those items that had been very necessary to live. He stated that reducing the price of petrol/ diesel, electricity, and gas would be imperative if the country wants to save its lower middle class and shopkeepers, traders, and businessmen selling and producing items in demand in the lower middle class. He had his own version of the economy and was of the view that the economic activities of smaller cities and towns depend upon the buying power of the poor and lower middle class that is under the tremendous pressure of high prices of utility items (electricity, gas, fuel), etc.
Asghar Jatt, who deals in the Faisalabad grain market when asked to comment on the economic situation of the country was of the view that a decline in the value of the dollar, reduction in the price of gold, reduction in petroleum prices, effective actions against illegal economic activities are (were) welcome measures that are expected to improve the situation.
“What is needed now is that as a result of these significant reductions, other commodity prices should also come down significantly. For this, the federal and provincial governments should take immediate action against the profiteers so that a clear reduction in petrol prices is communicated to the public. They can be benefited properly and their economic problems can be reduced”, commented Asghar Jatt.
