News
Thursday, May 08, 2008
‘Measures to stop rupee devaluation in 10 days’
* Senate committee summons State Bank governor in next meeting
By Sajid Chaudhry
ISLAMABAD: The government will announce corrective measures to stop the devaluation of the rupee within 10 days, after approval from the Finance minister and the prime minister, Finance Secretary Farrukh Qayyum said on Wednesday. The new Finance secretary told the Senate Standing Committee on Finance and Revenue that the measures would restore investors’ confidence and correct the negative trend in the stock market. The Senate committee took serious note of the flight of capital from the country, the devaluation of the rupee by Rs 6 against the dollar and the 1,000-point decline in the Karachi Stock Exchange. State Bank governor: The committee has asked State bank Governor Shamshad Akhtar to appear before the committee today (Thursday) and explain the bank’s role in the current state of affairs. Senator Ahmed Ali, the chairman of the committee, said that the devaluation of the rupee had increased the debt burden by Rs 250 billion. Moneychangers were running the market, he said, and the top officials were not intervening, he said. Ali said the State Bank governor and the Finance minister were on a foreign tour. He asked the Finance secretary to appoint an official spokesman at the ministry to respond to the media’s questions. Senator Nisar Memon demanded an in-camera session of the committee with the Finance minister who he said should explain the International Monetary Fund (IMF) and World Bank’s observations on Pakistan’s economy during their spring meeting at Washington. Senator Haroon Akhtar said the devaluation of the rupee would also affect the import of oil, wheat and palm oil and the resulting increase in petroleum prices would have to be passed on to the consumers. Senator Anwar Bhinder assured the government of the opposition’s support in resolving economic problems. Senator Pari Gull Agha said the Finance Ministry should explain how the national kitty “went empty within a month”.
Courtesy Daily Times