Depreciation of the dollar is a result of the crackdown, Malik Bustan

During a conversation with Shahzeb Khanzada, Chairman of the Exchange Companies Association of Pakistan, Malik Bostan, stated that the continuous decrease in the value of the dollar is a result of a crackdown. He highlighted that exchange companies should have been eliminated long ago, and banks should have launched their exchange companies through their branch networks.

Economic expert Khurram Shahzad expressed that the elimination of exchange companies was the right decision, and it should have been taken a long time ago. He suggested that banks should establish their exchange companies through their branch networks, which could lead to a more formal and organized economy. He also mentioned that the rising global oil prices have contributed to the increase in the demand for the dollar.

News anchor Mahtab Haider commented that while actions are being taken on the directives of the Army Chief, the economic team’s vision is still not apparent. The need to curb smuggling and hoarding, especially in the case of the Chinese currency, is essential.

Malik Bostan argued that the continuous decline in the value of the dollar is a consequence of the crackdown. He mentioned that they had recommended action against the individuals involved in illegal activities in the black market to the Army Chief.

The Army Chief, in a meeting with business community representatives, had promised to infuse dollars into the market. The improvement in the value of the rupee will require better management, and restrictions on inflows and outflows should be revised, according to Mahtab Haider.

The economic fundamentals of Pakistan’s economy are still challenging, and the International Monetary Fund (IMF) has also emphasized the need to address structural issues. The issue won’t be resolved through patchwork solutions; Pakistan needs to revise the 1.25% condition on the exchange rate in the interbank and open markets to stabilize the exchange rate without any additional support.

The conversation revolves around the recent crackdown on exchange companies, with differing opinions on the impact and the need for a comprehensive vision to address Pakistan’s economic challenges effectively.