Political unrest, trust deficit affect growth
Our Correspondent
April 11, 2023
KARACHI: Pakistan Business Forum (PBF) on Monday urged for a contract of economy signed by all stakeholders, saying political stability and development of trust were essential for restoring the economy.
In a detailed session, the forum emphasised on adherence to the Constitution for Pakistans future, while it also expressed concern about a hike in the policy rate by the State Bank of Pakistan.
PBF president Mian Usman Zulfiqar emphasised the importance of speaking out together for the improvement of the business environment. The forums vice president, Chaudhry Ahmad Jawad, was of the view that Pakistan had already paid a huge price by making democratic governance and the rule of law subject to belief, custom, and prejudice.
We must understand that political stability and development of trust are essential for restoring the economy. To ultimately benefit the economy, all ideological groups should sign a contract of economy, Jawad said.
Even friendly nations were no longer willing to fund Pakistans economy because of the political unrest in the country, he lamented. First think about the economy, then something else, the vice president urged, adding that the business community should be included in the process of formulating policies related to businesses.
Jawad stated that the State Bank of Pakistan had made another approach climb which took the strategy rate at 21 percent. He warned that the hike in the policy rate could have serious repercussions for the expansion of business and industry.
It will have a negative impact on the industrialisation process, the expansion of the private sector, and a rapid deindustrialisation of the nation. The best way to reduce inflationary pressures is to increase domestic production, industrialisation, and export growth rather than trying to control inflation.
Jahanara Wattoo of PBF argued that Pakistan's current policy rate was already significantly higher than that of other regional economies. This basically means that Pakistan already costs more than other economies in the region to get access to finance, which is essential for expanding trade and industry.
She emphasised an urgent need for a soft image of the country, saying all of the country's chambers of commerce and industry and trade associations would need to collaborate to achieve the goal. The nation's economic woes do not appear to be going away soon, Wattoo feared.
PBF president drew attention towards decreasing exports, saying national economic policymaking lacked direction at a time when the nation must take drastic measures to encourage economic growth and alleviate the suffering of ordinary people as well as businesspeople.
Tuesday, April 11, 2023 at 1:00 am