Businessmen have decried an increasing polarisation in domestic politics as they believe that Pakistani rupee can gain strength only when political stability is restored in the country.
“Uncertainty is lethal for business and economic activities,” remarked PM Economic Advisory Council’s former member Dr Abid Qaiyum Suleri while talking to The Express Tribune. “Political uncertainty is dangerous for the economy.”
During the current economic meltdown, according to Suleri, businessmen await the announcement of business-friendly policies. A major challenge is the resumption of International Monetary Fund’s (IMF) loan programme, which is not easy for the government as it expects reaction from the opponents.
“We need political wisdom to control inflation, give subsidies and control US dollar smuggling to Afghanistan,” he said. “If we fail, political polarisation will grow and the economy will suffer more.”
Pakistan’s mainstream political parties have a huge responsibility to bear, said Pakistan Businesses Forum (PBF) Senior Vice President Riaz Khattak at a seminar titled “Is Pakistan economically governable”.
“Political polarisation is the major reason for the economic downfall. Politicians or dictators, whoever comes to power, focus more on maintaining their political careers instead of national interests,” Khattak stated.
Pakistan had been facing challenges since its inception, commented Arif Habib Commodities CEO Ahsan Mehanti. “Politicians, security agencies and businesses have played a role in taking the country to where it is now,” he said.
No economic charter had been drafted to cure the economic ills, said Union of Small and Medium Enterprises (UNISAME) President Zulfikar Thaver, adding that whichever government came to power, it never went for austerity and continued to make heavy expenditure.
“There are extreme differences and vested interests always come first,” he lamented.
Thaver pointed out that the foreign currency reserves now stood at only $6.7 billion while at the same time there was a heavy burden of debt repayment on the country. “It is difficult to import even the essential raw material as well as wheat, cotton and chemicals.”
“Political certainty is a must for a flourishing economy; for that we must give a chance to all stakeholders,” said Korangi Association of Trade and Industry (KATI) President Farazur Rehman.
Khattak was of the view that Pakistan needed a correct economic model that should remain in place for 10 to 20 years. Similarly, “a good fiscal and monetary policy is required to stabilise the economy”.
In the beginning, steps should be taken for reducing debt, increasing financial gains, organising national resources, slashing losses of state-owned enterprises, scaling down needless development spending, removing shortfalls in the energy and infrastructure sectors, controlling inflation and keeping the currency stable, he suggested.
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