LAHORE: The Pakistan Business Forum (PBF) has rejected the “artificial” and unprecedented increase in USD value at the interbank level, terming it a disaster for the economy.
Vice President of PBF Ahmad Jawad asked how could anyone allow a depreciation of Rs25 against one dollar within one day. He wondered on what criteria did the SBP do so.
He said it looks like the government is ready to meet all the IMF demands to revive its loan programme and as a result new taxes would be impose on the industry and the masses. PBF had already feared for further depreciation of the currency which is now becoming true; now we likely to touch 30 percent annual inflation rate in 2023.
Despite that Pakistan should be considering alternative options to tide over its economic crisis other than habitual option of IMF.
Unfortunately Pakistan’s formula for economic growth is as flawed as it gets: borrow foreign currency-denominated loans, build some large-scale infrastructure, get a minor growth spurt in the process, and wait until this growth spurt fades so we can repeat the process again.
Our economic failure is a symptom of our collective political choices. Once we can allocate political power more fairly, we can make better economic outcomes.
PBF Vice President said it’s high time to lower Pakistan’s debt, ensure a stable currency and promote business-friendly policies for foreign and domestic investors and that could be possible if we fix our currency for a period of few years at the rate of Rs200, only borrowing from commercial banks for government expenditures, enhance our tax collections and ensure accountability with no bail out further to state owned enterprises and surprisingly we have a vibrant agriculture sector who have a potential to contribute five percent GDP growth annually. Through this we could come from this ongoing economic meltdown.
Similarly we should understand FDI will only be flourishing if you have a stable currency in order to determine the profitability for the foreign investors.
But that could be possible if we sign charter of economy for at least 20 years including to revive our strategic relations with United States too.
PBF official also stressed to attain a balanced development in establishing united and fair society; stresses on to the growth with fair distribution enabling every Pakistani to participate in any principal economic activity.
Copyright Business Recorder, 2023
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