Former President FPCCI and Chairman Businessmen Panel (BMP), Mian Anjum Nisar has called for solid economic plan from all the stakeholders, terming the new year of 2024 as the uncertain one in view of deteriorating energy crises following the tough conditionalities of the International Monetary Fund amidst upcoming elections, making this period more complicated and unstable for the economy.
In a statement issued here on Sunday, he said that all political parties should provide their economic stability plans to avert further losses and delays, warning that numerous global issues are impacting world economies. He said the upcoming government should prioritize resolving the energy crisis by providing sufficient and affordable electricity and gas to industries. The import bill should be reduced by imposing bans on luxury products.
Mian Anjum Nisar highlighted controlling inflation to ensure affordable living costs for the masses and containing the cost of production for businesses at a local level. He pleaded for formulating economic plans aimed at reviving growth in large-scale manufacturing, small and medium-sized segments, the service sector, and exports.
He stressed the need for a revisit of the economic policies, as the economic indicators throughout the 2023 remained very depressed amidst high inflation, low exports, depleting foreign reserves and continued uncertain position of the local currency.
The business leader said that almost all indicators of the economy continued to show poor performance during 2023, including volatile exchange rate, unprecedented hike in markup rate, repeated increases in electricity rates, gas shortage, price spiral, mismanagement and bad governance, becoming the hallmarks of the government.
He observed the negative economic indicators and uncertainty over resumption of the International Monetary Fund program continued to push the rupee towards a new historic low against the US dollar especially in first half of the calendar year of 2023.
Mian Anjum Nisar said that massive fall of rupee value continued to damage the economy, as the rupee witnessed a huge depreciation; one of the highest devaluations of local currency in Pakistan’s history in this period.
He urged the policy makers to concentrate on increasing tax-to-GDP ratio which was the lowest in Pakistan in the region in 2023.
The BMP leader warned if the government failed to take appropriate measures for economic revival, the trade and industry will face a complete shutdown, asking the government to convene a conference, taking the business community onboard.
He observed that besides increasing exports and controlling imports the government will have to take administrative measures, as a large demand of cash dollars are seen in the market. He argued that this devaluation of the currency was dictated by the IMF through prior actions and it has nothing to do with macroeconomic fundamentals.—INP
