Investment may dry up if political uncertainty persists
Businessmen say political noise not in the interest of economy, country
PHOTO: REUTERS
KARACHI:
There are some people who want to create uncertainty in Pakistan for their personal benefit, which is not in the interest of the economy and the country, commented Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Zubair Tufail.
“We need to calm down for the sake of the country because growing political uncertainty will only hurt the interest of Pakistan,” Tufail told The Express Tribune.
The president of the apex chamber said media should also show responsibility because fake or unconfirmed news were only adding fire to the fuel.
FPCCI backs agri sector as mainstay for Pakistan
After relative stability for four years, Pakistan has seen an unprecedented rise in political noise in recent months, especially since the ouster of former prime minister Nawaz Sharif. Moreover, growing trade deficit has further complicated the situation for the government.
The Pakistan Stock Exchange’s (PSX) KSE 100-share Index has already lost over 25% since hitting its peak in May 2017. Since July 2017, the month in which the former prime minister was removed through the Supreme Court order in Panama Papers case, the KSE-100 has lost 14% of its value.
Quoting Prime Minister Shahid Khaqan Abbasi, Tufail said the government was confident of reducing power shortages in the next six months when major power projects would come online.
He revealed that the FPCCI was going to provide a comprehensive report in the next eight days to the prime minister on how the industry intended to increase exports.
Based on this report, the government will decide on a relief package in terms of reduction in electricity tariffs for the industry.
“I think we (business community) are the most concerned people in the country because we have high stakes in terms of investments,” Lahore Chamber of Commerce and Industry (LCCI) former president Abdul Basit remarked.
The growing political instability was dangerous for the economy as well as for the country. Investors, whether local or international, looked for long-term political and economic stability in the country. In case of uncertainty, investors would stop making new investments that would eventually hurt the country’s interests in the long run, he added.
Economy is without direction: FPCCI
Pakistan achieved 5.3% GDP growth - highest in a decade - in fiscal year ended June 30, 2017. The State Bank of Pakistan (SBP) expects 5-6% GDP growth in the current fiscal year.
However, even the central bank, in its recent annual report for fiscal year 2016-17, has shown concern over the growing current account deficit.
Echoing the stance of leading industrialists, the SBP has urged the government to contain unnecessary imports and expand the export base for stable economic growth in coming years.
Published in The Express Tribune, October 15th, 2017.
There are some people who want to create uncertainty in Pakistan for their personal benefit, which is not in the interest of the economy and the country, commented Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Zubair Tufail.
“We need to calm down for the sake of the country because growing political uncertainty will only hurt the interest of Pakistan,” Tufail told The Express Tribune.
The president of the apex chamber said media should also show responsibility because fake or unconfirmed news were only adding fire to the fuel.
FPCCI backs agri sector as mainstay for Pakistan
After relative stability for four years, Pakistan has seen an unprecedented rise in political noise in recent months, especially since the ouster of former prime minister Nawaz Sharif. Moreover, growing trade deficit has further complicated the situation for the government.
The Pakistan Stock Exchange’s (PSX) KSE 100-share Index has already lost over 25% since hitting its peak in May 2017. Since July 2017, the month in which the former prime minister was removed through the Supreme Court order in Panama Papers case, the KSE-100 has lost 14% of its value.
Quoting Prime Minister Shahid Khaqan Abbasi, Tufail said the government was confident of reducing power shortages in the next six months when major power projects would come online.
He revealed that the FPCCI was going to provide a comprehensive report in the next eight days to the prime minister on how the industry intended to increase exports.
Based on this report, the government will decide on a relief package in terms of reduction in electricity tariffs for the industry.
“I think we (business community) are the most concerned people in the country because we have high stakes in terms of investments,” Lahore Chamber of Commerce and Industry (LCCI) former president Abdul Basit remarked.
The growing political instability was dangerous for the economy as well as for the country. Investors, whether local or international, looked for long-term political and economic stability in the country. In case of uncertainty, investors would stop making new investments that would eventually hurt the country’s interests in the long run, he added.
Economy is without direction: FPCCI
Pakistan achieved 5.3% GDP growth - highest in a decade - in fiscal year ended June 30, 2017. The State Bank of Pakistan (SBP) expects 5-6% GDP growth in the current fiscal year.
However, even the central bank, in its recent annual report for fiscal year 2016-17, has shown concern over the growing current account deficit.
Echoing the stance of leading industrialists, the SBP has urged the government to contain unnecessary imports and expand the export base for stable economic growth in coming years.
Published in The Express Tribune, October 15th, 2017.