‘Political uncertainty threatens economic survival’

Business leaders say up to 50% export orders shifted to regional competitors due to uncertainties

KARACHI:

The business community in Pakistan has expressed deep concerns over the prevailing political instability, highlighting its significant impact on the country’s already ailing economy and depleting exports. They have called upon all institutions and stakeholders to set aside their differences and come together for the betterment of the nation. The need for unity among political parties, the judiciary, and the establishment has been emphasised to prevent further economic disaster.

The Karachi Chamber of Commerce and Industry (KCCI) expressed its discontent over the ongoing political instability, stressing the urgent need for collaboration among institutions and stakeholders. They urged all political parties, the judiciary, and the establishment to unite for the sake of the country.

President KCCI, Tariq Yousuf revealed that exporters have been gravely concerned about the state of the economy, with 20% to 50% of export orders being shifted to regional competitors due to uncertainties surrounding the timely delivery of consignments.

In another meeting held in Karachi, prominent businessmen discussed the volatile situation arising from political chaos and instability, which has pushed the economy to the brink of collapse. They warned that this situation would result in widespread unemployment, create extreme hardships for the common man, and severely hamper Pakistan’s exports.

The attendees, including Aqeel Karim Dhedhi, Arif Habib, Shabbir Dewan, and others, emphasised that the ongoing political crises would lead to anarchy and irreversible losses for the country. The image of Pakistan in the international market has already been tarnished, affecting exports and the overall perception of the country, they said.

The business community called for immediate action to prevent further decline before it becomes too late. They expressed solidarity with the nation and offered to engage with all political parties and stakeholders to resolve the situation to everyone’s satisfaction.

The prevailing circumstances were deemed grave and dangerous, and any further deterioration would have irreparable consequences, not only for business but for the entire nation.

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The business community stressed the urgent need for flexibility and cooperation from all stakeholders, particularly the political parties, for the survival of Pakistan.

They expressed their willingness to collaborate with political parties and other stakeholders to amicably resolve the issues at hand. Strengthening all institutions, including political parties, the judiciary, and the armed forces, was deemed crucial to save the country from an irreversible disaster.

President of the Korangi Association of Trade and Industry (KATI), Farazur Rehman, emphasised the seriousness of the economic crisis resulting from political instability. He urged all political parties to set aside their differences and engage in negotiations to reach a consensus, highlighting the importance of the Charter of Democracy.

The KCCI warned the government about the widening current account deficit, which would further escalate if the political and economic crises were not addressed promptly.

They said that there are ways for Pakistan’s economy to survive even without an IMF programme but for that to happen drastic measures were required with a particular focus on increasing exports.

They called for implementing effective strategies, in consultation with the industrial community, to boost exports within a matter of months.

Published in The Express Tribune, May 16^th, 2023.

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