Don't worry about Dollar hike, PM Imran advises public

ISLAMABAD - Prime Minister, Imran Khan said on Friday that people should not worry about the recent hike in US Dollar price against Pakistani rupee saying, his government was taking steps to ensure that a shortage of dollars would not exist in the future.

Addressing a ceremony to announce the launch of a car manufacturing plant by JW Forland, the prime minister spoke expressed he was getting phone calls about the recent devaluation of Pakistani currency as the dollar climbed an all-time high of Rs142 in the interbank.

"I want to tell everyone not to worry about the dollar hike. There is an adjustment taking place. We are taking steps which will ensure that there won't be a shortage of dollars in Pakistan," Khan told the audience.

The prime minister highlighted that Pakistan’s biggest problem was the ensuing current account deficit which stood at almost $18.5 billion adding that the government was tasked with overcoming the deficit.

"When there is pressure on the dollar, the exchange rate increases," the premier explained.

Prime Minister Khan stressed there was a need for a change in mindset, emphasising that his government had made investment easier as it creates jobs and brings dollars in the country.

The premier- who highlighted the achievements of his government during the first 100 days - also spoke on ease of doing business for investors, which in turn would attract more investors.

There was a need for technological transfer which was among the areas of focus during my trip to China, Khan added.

The prime minister elaborated that Pakistan had transformed into an import economy where manufacturing had diminished.

"For the first time in Pakistan’s history, a complete car manufacturing plant was being set up and this would create 5,000 jobs which would increase to 35,000 in the future," the premier vowed.

Earlier in the day, US dollar hit an all-time high of Rs142 against the Pakistani rupee in the interbank market.

Dollar gained Rs8 (a five percent increase) to touch the new high in the interbank market, a day after the ruling regime highlighted its steps taken in the first 100 days; the dollar stood at Rs 134 when the market closed on Thursday.

According to economic experts, the spike in dollar comes owing to the widening current account deficit and International Monetary Fund’s (IMF) suggestion to realign the rupee with market fundamentals to access funds.