The State Bank's first quarterly report is an eye-opener for both policy makers and stakeholders and calls for effective policies for top-to-bottom implementation mechanism to regain macroeconomic stability during the ongoing fiscal year.
Lahore Chamber President Mian Muzaffar Ali, Senior Vice President Tahir Javaid Malik and Irfan Iqbal Sheikh in their reaction to the State Bank of Pakistan report said that the country direly needs wholesome measures to give boost to GDP growth and arrest fast increasing inflation, as surge in inflation not only erodes the purchasing power of middle class but also earns a bad name for the government.
They expressed their grave concern over negative growth in Large Scale Manufacturing Sector (LSM) saying that cut in mark-up and rationalisation of duties are the steps to bring the LSM sector out of mire but despite repeated request no attention was paid. They said that huge energy shortage is one of the biggest reasons of manufacturing slowdown and unless and until continuous supply of energy is ensured, economic revival would remain a dream.
They said that deterioration in law and order situation and depreciation in rupee value were the other major contributors of manufacturing sector decline. There is no doubt in it that the government is seriously monitoring the economic situation and taking appropriate measures but it should convene a meeting of representatives of all trade bodies to ensure proper implementation of its policies, they added.
They said that increase in steel products also eased out demand for local brands of vehicles, therefore, auto sector registered the highest decline in LSM growth and if increase in the prices of steel products were deferred for some time the situation would have been quite encouraging as far as auto sector is concerned.
They also took a strong exception to the Trade Development Authority of Pakistan for failing to rise up to the occasion and for failing to explore new markets for Pakistani merchandise. The most of the country's exports remained confined to a few countries including the US and the UK. Had the TDAP been able to issue guidelines for exporters through chambers of commerce in the country, the situation would have been quite different, they added.
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