Secretary General (Federal) of the Businessmen Panel (BMP) and former Chairman Standing Committee of the FPCCI, Ahmad Jawad has urged Prime Minister Imran Khan to call monthly meetings of the Economic Advisor Council (EAC) and Business Council till one year at least, so that practical approach and consensus may flourish to stabilize the country economy.
He noted Prime Minister has constituted an 18-member EAC with the induction of a few world-renowned economists to ensure the availability of best possible professional advice to the government on economic policies; as eminent economists part of the body that will meet at least once a month to guide government on short and long term interventions, structural reforms but till date few from them took part away from this EAC
He said that after PTI victory in general elections 2018, US Dollar started slides down against Pakistani rupee and it was expected rupee would further stable after Imran khan take over the government, but we saw a change of 180 degree in the rupee, instead of stability currency started depreciated and by 31st March 2019 Pakistani rupee were closed around 142 rupee which was a major concern for the business community and masses at large. He expressed fear that by end of June 2019 rupee will further depreciate of around Rs 150 against one dollar.
He said in contrast of extended depreciation country exports were not increased by more than two percent. Another concern for economy "as of now country's total debt is around $90billion and when you depreciate one rupee, your loan would increase Rs 90 billion against each rupee".
He demanded from the finance minister to take on board the business community that why your ministry started depreciation of Pakistan rupee continuously and what was the back ground. If it's adjustment and previously it was controlled artificially then how come soon PTI wining the elections, dollar lost its momentum against Pakistani rupee, he questioned.
He expressed why don't we fix the exchange rate like Malaysia did before in the previous tenure of Dr Mahathir to stabilise its economy because they knew IMF solution is not a answer and their programs are more less politically based on country to country.
Ahmad Jawad said we understand that country's debt was a serious issue and government has to pay back the loans which previous governments took it in order to continue the credibility of Pakistan, but is this the correct method to pay loans against fresh borrowing on monthly basis including to opt another IMF program. This is the only solution in the hands of the present finance minister; he lamented.
Government shouldn't initiate a transparent and clear privatization process in its first seven months and yet to started privatization process he said and further suggested that government may sell at least 50 percent shares of the state owned companies along with management to the private sector for the repayment of country debt which could help us and in future our expenses may also goes down.
"One must understand new borrowing to repay previous loans is not argument and you can't sell this to public if you may continue it".
Jawad also viewed to continue with the austerity drive there are so many organizations which cannot helpful for public and economy ( i.e. TDAP, Pakistan Tobacco Board etc); why don't Government decided to close them. Every year Commerce Ministry rendered billion of rupees to TDAP for promotion of exports but in last ten years we didn't saw optimum contribution of this authority instead of paying salaries to their staff and bribe the small trade bodies of this country often and on. "I think TDAP role may be shifted to FPCCI and let FPCCI may conducted few exhibitions to promote Pakistani products every year and for that Ministry Commerce may be release some funds to the Federation Chambers for specific purpose".
Similarly Prime Minister may share the concrete policy of the government how to repay the previous loans installments other than the fresh borrowing, because this confusing economic situation might be stop the day to day progress of the industry and the businesses; Jawad added.
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