Pakistani currency is undervalued by 10 rupees, says Tareen

Says govt not to levy more taxes in view of higher dollar rate: Govt rejected IMF’s demand to raise taxes: Concessions given in budget to be reviewed

By: News Desk      Published: 11:40 AM, 26 Nov, 2021
Pakistani currency is undervalued by 10 rupees, says Tareen
TV grab.

Admitting that the US dollar’s rate was 9 to 10 rupees higher than what it should be, Adviser to Prime Minister on Finance Shaukat Tareen said on Friday that the government would not levy more taxes on the people in view of the higher dollar rate, reported 24NewsHD TV channel.

Addressing a press conference in Karachi, Shaukat Tareen said that as a matter of fact a dollar’s price should hover around Rs165 and Rs166. 

At the same time, however, he squashed the rumours that there would be a further depreciation of the Pakistani rupee. “Don’t lend your ears to such rumours,” he requested, and added that when the dollar’s price would come down, these rumour mongers would receive a jolt. 

Adviser to the PM said that the government would review the concessions it had given in the last national budget. “The question is whether the farmers are reaping the benefits of Rs250 billion gas subsidy the government has offered to the farmers on fertilizers?” 

Shaukat Tareen maintained that the government has rejected IMF's demand to raise taxes.

He told the media that the government would reach out to the farmers through Ehsas Programme. 

Acknowledging the importance of small and medium enterprises (SMEs), he said these were like a backbone for a country’s economy. “We have four to five million SMEs in Pakistan. And it is unfortunate that only around 0.1 million of these receive loans from the banks,” he said, and stressed the need for reaching out to the remaining such enterprises in order to boost the economy.  

Tareen admitted that people living in urban areas, belonging to the middle class, were suffering because of inflation, and claimed that the current economic growth would benefit them in times to come.  

Tareen regretted that the opposition created doubts in the minds of people about the deal the government had struck with the International Monetary Fund (IMF).

He said there was a greater need for increasing the capital market. “For that, it is necessary that people should have its understanding as well trust in the government,” he opined. 

The adviser said the country should look at the incentives being offered to investors in neighbouring countries so that their models could be followed here.