ISLAMABAD: Former President of Islamabad Chamber of Commerce and Industry (ICCI) Dr. Shahid Rasheed Butt on Friday said the prevailing political turmoil and other factors have adversely damaged the economy of the country.
In a statement issued here, he said that the IMF’s program was on hold, foreign exchange reserves were at around $4 billion and Pakistan was due to pay $3.7 billion next month, with the risk of default looming.
In these circumstances, it will be difficult to provide relief to the public and the business community in the forthcoming budget, he added.
Shahid Rasheed Butt said that Pakistan will somehow manage payments of three billion and seventy million dollars, but next year, Pakistan will need thirty-four billion dollars to repay foreign loans and interest.
It will be difficult for Pakistan to manage 34 billion dollars without the IMF programme, he added.
The business leader noted that the stock market has decreased by one thousand and forty-six points in two weeks, while exports have decreased by 11.7% in ten months. Textile exports have decreased by two billion dollars and a decrease of six billion dollars is expected in the year’s exports.
He said that a decrease of four hundred billion rupees has been recorded in tax revenue and there has been a thirteen percent decrease in remittances during the last ten months.
Production of major industries has fallen by 25% leaving millions jobless while interest rates are at 21% which is ruining businesses.
Presently, banks are not lending to the private sector because they are getting 22% interest from the government which has been affecting the economic system.
Shahid Rashid said that in the last ten months, there has been a decrease of 18% in oil imports, which is proof of the economic slowdown. Meanwhile, inflation has increased by more than 36%, which has increased the government’s expenses.
The government was under pressure to increase the salaries and pensions of government servants and hike the minimum wage that will increase the financial pressure, he added.
The business leader said that due to the reckless behaviour of the government, the risk of default was increasing due to which people were shifting their savings to dollars that was damaging the economy.
Despite the serious challenges, the government will never impose tax on the shopkeepers and the rural elite, he concluded.
