Benefits of devaluing rupee less then disadvantages.

Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Friday said the disadvantages of devaluing the rupee are more than advantages as it is hitting the entire population and stoking poverty.

The policy of devaluing local currency can start a currency war with rival countries that can result in a loss rather than a gain, he said.

Mian Zahid Hussain said that the formula of devaluing currency is not applicable in Pakistan as many countries have suffered huge losses by devaluing their currency against USD and other currencies.

Reacting to a statement issued by Governor State Bank Dr. Reza Baqir, he said that devaluation of local currency can increase exports to some extent and reduce the trade deficit but at the same time it makes imports more expensive and increases the pace of inflation.

He noted that in a country like Pakistan where imports are almost three times higher than exports and huge quantities of imported raw materials are being used in exports, this formula is not applicable.

The devaluation of the currency has increased the country's debt by about Rs 2400 billion, while local and foreign investors are worried over uncertainty, he said.

The business leader noted that many countries have suffered huge losses by devaluing their currency while some have faced currency wars with nations...