Business community decries political upheaval
Improvement in economy is expected to come from a steady performance of agriculture and recovery in services sector. PHO-TO: FILE
Pakistan is going through a difficult time as political instability has cut off domestic and foreign investment, which is a matter of grave concern for the country, remarked Korangi Association of Trade and Industry (KATI) President Salman Aslam.
In a statement on Wednesday, he said that the value of the dollar had been consistently rising, which placed Pakistani rupee among the worst performing currencies in the region and raised fears of a surge in inflation in the country.
Aslam pointed out that the dollar had surged past Rs186, which was detrimental to the economy.
“The countries whose currencies have depreciated rapidly are on the verge of collapse and the respective governments have failed to rebuild their economies,” he said.
“In such a case, it becomes the responsibility of the State Bank of Pakistan to realise the gravity of the situation and intervene to arrest the diminishing value of the rupee.”
The KATI president urged politicians to work towards reconciliation for the development of the country instead of engaging in political confrontation.
He cautioned that failure to stabilise the national economy could trigger a severe economic crisis.
“The historic surge in the dollar value and the economic crisis are the foremost factors hurting trade,” he lamented. “It has become very difficult for exporters to compete in the world market.”
The KATI president was of the view that if the current situation persisted, it would lift the inflation reading, increase unemployment and trigger an economic chaos.
“The sovereignty of Pakistan should not be compromised and the economy must be saved by finding immediate solutions to the problems,” he said.
Separately, officials of the Rawalpindi Chamber of Commerce and Industry (RCCI) have expressed deep concern over the current economic and political uncertainty in the country.
“Trade deficit has hit a historic high while the rupee continues to depreciate and foreign exchange reserves are on the decline,” said RCCI President Nadeem Rauf and former president Sohail Altaf.
“It is a save our soul (SOS) call to the relevant quarters to address the current situation,” they said in a statement.
They were of the view that trade relations should be separated from politics, adding that Pakistan’s trade ties with the United States and Europe should be viewed from a separate lens than politics.
The United States and Europe are important economic partners of Pakistan and both are also the major export markets.
Pakistan exports $6.5 billion worth of goods to the US, while its exports to Europe are close to $16 billion.
RCCI President Nadeem Rauf cautioned that if immediate steps were not taken, then the country would face a severe economic crisis.
Published in The Express Tribune, April 7th, 2022.
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