LCCI seeks measures to reduce increase in dollar value

LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) urged the government to take measures to limit the rise in the dollar in order to ease the pressure on foreign exchange reserves, a statement said on Monday.

Speaking in an interactive session with board members of the Lahore Economic Journalists Association (LEJA), LCCI President Mian Nauman Kabir suggested trading in local currencies to end the dollar dependence.

He said the initiative would help reduce the trade deficit, the main cause of the rupee’s devaluation, adding that currency swap deals with Russia and other countries in the region would help strengthen the local currency. .

The devaluation of the rupee has made imported raw materials for the industrial sector more expensive, the LCCI official said, adding that the volume of bilateral trade with China alone exceeds $ 13 billion.

“[The] currency swap agreements with countries in the region, particularly with China, will significantly reduce [the] under pressure [the] foreign exchange reserves, ”he said.

“We must strengthen [the] sector to improve exports, ”Kabir said, adding that the main problem SMEs faced was lack of access to finance.

“[The] SMEs hold only 6 percent of total credit to the private sector, ”he said and called for using renewable energy resources to reduce reliance on expensive electricity produced from imported fuels.

He also called for the price control mechanism to be effective in controlling inflation.

LCCI Senior Vice President Mian Rehman Aziz Chan and Vice President Haris Ateeq called for a national economic policy to deal with economic challenges, saying all stakeholders should be included on this issue.

They said the Covid-19 pandemic has posed serious challenges to economies around the world and urged the government to take action to document the economy.

LCCI office officials said non-traditional sectors, especially pharmaceuticals, engineering and halal foods, should be concentrated to boost exports, adding that product and market diversification is the key. need the moment.

The president of LEJA, Sudhir Chaudhry, also spoke on this occasion.

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