The business community Sunday urged the top leadership of all mainstream political parties to sit together brushing aside differences to evolve a viable strategy to steer the country out of current worrisome economic crunch plaguing the industry.
Talking to a delegation of industrialists and traders led by President Pakistan Furniture Importers Association Mian Faryad Ahmad Raza, the Coordinator to Federal Tax Ombudsman and Minister of State Meher Kashif Younis said the deepening political turmoil is one of the major factor responsible for economic instability as depreciation is taking heavy tool on stock investors,currency markets crying out for dollars amid liquidity crunch and recording the highest ever weekly inflation spike.
He said due to domestic political upheaval,a surging current account deficit amid depleting dollar inflows from multinational and bilateral lenders as well as shrinking foreign investments have brought the foreign exchange reserves and rupees under enormous pressure over the last several months ,stoked rapid inflation,forced the State Bank to boost borrowing costs to a multi year high and eroded investors confidence in the country.He said its admitted fact worldwide that political stability is pre-requisite for sustainable sound economy that’s also promise survival of the country.
Meher Kashif Younis said Pakistan’s current account deficit has surged to $17.4bln equivalent to 4.6pc the size of economy during the last fiscal year on the rising trade deficit,in spite of multiple actions taken by the government and the SBP since last quarters of 2021 to restrict imports.He said the growth in exports and remittances of expats did somewhat help narrow the yawning gap but elevated global commodity and oil prices meant that Pakistan would spend more on its energy and other imports that doubled oil import bill to $2.9bn in June from $1.4bn in May.
Meher Kashif Younis said with the hope IMF releasing funds soon thus unlocking additional financing from other multilateral and bilateral creditors,Pakistan’s external sectors may likely perk up in the short term. However,in prevailing scenario,it’s not permanent solution what’s we need is uninterrupted consistency in our economic policies irrespective change of government.
He feared that it will be unfortunate if the top political leaders don’t shrink differences and come on one page saving fragile economy from total collapse in the larger national interests and fails to address structural impediments to exports and FDI because of the grave political instability being witnessed at the moment, he added.
He suggested that complete ban should continue on all luxury and other items manufacturered in Pakistan and also made an impassioned appeal especially to government and people particularly switching over simple life by strictly observing austerity in line with cardinal teachings of Islam.
