FPCCI proposes ‘non-political, legally binding charter of economy’

KARACHI: President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Irfan Iqbal Sheikh has proposed a non-political, inclusive, sustainable and legally binding Charter of Economy to forge an across-the-board contract and commitment towards economic growth, development and equality.

Welcoming the formation of a new government and its cabinet, Mr Sheikh said the business community was profoundly concerned over the prolonged vacuum in the federal executive structure, which has only now been taken care of after the assigning of major portfolios across the ministries.

He said the aforementioned charter should encompass all sectors of the economy and all segments of the society. “Let’s work together for a prosperous, egalitarian and industrialised Pakistan,” he remarked.

Expressing optimism, Mr Sheikh said that FPCCI is hopeful that the prime minister will bring a noticeable change when it comes to governance, administration and delivery, on the back of his proven track record of successfully implementing reforms and completing wide-ranging mega projects before time.

He added that while FPCCI acknowledges the initial gains in the rupee-dollar parity and the Pakistan Stock Exchange (PSX), there are many immediate and pressing issues in trade, industry and the economy, in the eyes of the apex chamber of the country.

The FPCCI chief said that credible international agencies are forecasting that the country’s CAD in the fiscal year 2022 will be $18.5 billion, which is more than 5% of GDP.

The new government and its finance minister should start an objective and inclusive consultative process with the stakeholders in the business community and take them into confidence on how and why the government will be able to manage the CAD.

He maintained that Trade Deficit has surpassed $35.4 billion in the nine months (July-March) of the current fiscal year 2022.

FPCCI advocates tangibly incentivising and subsidising industrialisation, import substitution, IT exports and facilitating Small and Medium Enterprises in the export-oriented industries for the near-term gains, he said.

He emphasised that circular debt has reached Rs 2.5 trillion and has put Pakistan’s energy security at a heightened risk. The government must ensure fuel and energy supplies to the industrial sector through an elaborate and well-communicated plan of action.

He said that food inflation has “crushed the masses” on the back of international fuel and commodity prices and supply-side mismanagement. The government must swing into action with efforts for assistance of private sector to ensure food security.

The FPCCI chief, condemning the policy rate hike, said that raising the policy rate to 12.25% could very well prove to be the last nail in the coffin of SMEs, which are already under dire strains due to the burgeoning cost of doing business, abysmal ease of doing business indicators, difficulties in access to finance, uncertainties in access to foreign exchange and regionally uncompetitive costs of electricity and gas. He demanded the immediate reversal of the policy rate hike.

He reiterated that the Federal Board of Revenue has become a notice manufacturing factory and suggested strategic and sustainable reforms in consultation with the business community, elimination of maladministration, corruption and harassment, besides withdrawal of unfair notices.

Copyright Business Recorder, 2022