Inflation, interest rate to start falling from Feb: Alvi

Blames economic troubles on past wrongdoings, FATF issue

ISLAMABAD: President Arif Alvi has recognised efforts of the business community, saying they are playing a key role in economic development of the country but are facing the problem of high interest rate.

“However, due to measures taken by the government, the interest rate and inflation will hopefully start declining from February 2020,” he said while addressing the All Pakistan Chambers Presidents Conclave 2020, organised by the Islamabad Chamber of Commerce and Industry (ICCI).

He blamed the current economic difficulties on past wrongdoings and the Financial Action Task Force (FATF) issue, but voiced hope that things would start improving soon as the government was working hard for the purpose.

He stated that improved purchasing power of people would lead to better growth of business activities and the government’s key focus was to reduce inflation.

He pointed out that China had achieved better economic growth by providing easy financing to small and medium-sized enterprises (SMEs) and the government of Pakistan was also focusing on providing SMEs easy access to financing.

As population-wise Pakistan was the sixth largest country in the world, it had become one of the potential markets, which was why investors from Japan and many other countries were taking keen interest in the country, Alvi remarked.

He emphasised that the chambers of commerce should encourage women entrepreneurs so that they could play an effective role in economic development of the country.

ICCI President Muhammad Ahmed Waheed stressed that the purpose of organising the conclave was to gather the business community on one platform in order to discuss their major issues and present proposals to the government.

Waheed called on the government to give due consideration to the proposals and recommendations that would come out of the conference.

Speaking on the occasion, Federation of Pakistan Chambers of Commerce and Industry President Mian Anjum Nisar pointed out that a major obstacle in the way of the business community was high interest rate, which should be addressed by the government immediately.

Over the past five years, Nisar said, Pakistan had faced deindustrialisation and urged the government to focus on saving the existing industry from becoming sick instead of reviving sick units. “The business community should be provided a level playing field for growth and expansion,” he said.

Published in The Express Tribune, January 22^nd, 2020.

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