The Businessmen Panel (BMP) of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has warned that a bailout from the International Monetary Fund (IMF) alone was unlikely to speed up economic growth, as the political instability and lack of reforms would further deteriorate the financial situation in the country.
It should be mentioned here that the Executive Board of the IMF has completed the 1st review Standby Arrangement, allowing for disbursement of $ 700 million, bringing the total disbursements to $ 1.9 billion for Pakistan.
In a statement on Sunday, former President FPCCI and BMP Chairman MianAnjumNisar observed that amidst continuous of hike in cost of production in the country, what the Pakistan’s economy really needs is persistent and sound economic management. He asked the authorities for undertaking economic reforms and improving the regulatory environment to boost foreign investment so that financial stability can be achieved in the long-run.
The BMP chief stressed the need for reducing cost of doing business, besides evolving a new price control mechanism, as huge taxation, rising oil prices and constant jump in electricity and gas tariffs have lifted the inflation to decades high level in 2023.
MianAnjumNisar warned the authorities that inflation above 6 percent can hurt economic growth and a careful policy is required to keep it in control. He said that the pace of inflation is skyrocketing at a time when the economic activity is slowing down.
As the oil prices have been increased and power tariff has gone up further the BMP chairman stated that the government has dropped a fuel bomb on the businessmen after it suffered an electric shock to meet the conditions of IMF for the revival of the stalled loan program- a recipe to shake the trade and industry.
The former president FPCCI said that the decision would prove detrimental to the industries due to high cost of doing business and will also open the floodgates of inflation. In addition to making the electricity bills costlier and unaffordable for the consumers, the hike in base tariff would escalate prices of all household goods being widely used in every household, he added.
He termed the increase in tariff unlawful and a violation of NEPRA’s own rules and regulations, as any increase in tariff has to be determined and implemented only after holding public hearings but unfortunately they have solely decided to raise the tariff without holding public hearings, he argued.
