Traders for saving country from economic collapse
Fiscal adjustment efforts, addressing worsening trade balance, mitigating political and economic uncertainty will result in slowdown in economic growth in the next fiscal year. Photo: file
The government, politicians, all institutions including the State Bank of Pakistan (SBP) will have to play their role to lift up the rapidly sinking economy and save the country from economic collapse, remarked Lahore Chamber of Commerce and Industry (LCCI) President Mian Nauman Kabir.
Speaking at an emergency press conference on Wednesday, Kabir said “none from the government or political parties is keen to address issues facing the business community”.
He cited that political instability, lack of interest by the acting SBP governor in resolving business issues, unjustified taxes on electricity bills, rising inflation, trade deficit, rupee devaluation and the lack of cooperation from banks were hindering smooth running of the businesses.
He pointed out that the inter-bank rupee-dollar rate had exceeded 236, indicating that the rupee depreciated by more than 12% in the past one month and by 25% over three months.
“We cooperated with the government but in return it gave no relief to the business community, instead it added to their miseries,” he argued.
“We accepted a fixed tax but the government has started collecting sales tax in electricity bills along with the fixed tax. It means if the electricity bill is Rs2,000, the consumer will have to pay Rs700 more in the shape of tax.”
Citing the worrying statistics, he said inflation rate was recorded at 21.3% during the month of June, the country’s trade deficit soared to $48 billion in FY22, while the current account deficit touched $15 billion in the first 11 months of FY22.
Showing concern, the LCCI president said that the country’s overall foreign exchange reserves had dropped to $15 billion in July 2022 from $24 billion in July last year.
He decried that banks were exploiting the business community and were charging more than the inter-bank rate at the time of releasing import shipment documents. He asked the SBP to take immediate notice of the situation.
LCCI’s senior office-bearers emphasised that deferred payment agreements with Saudi Arabia and China should be finalised at the earliest.
Published in The Express Tribune, July 28th, 2022.
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