Karachi: The Karachi Chamber of Commerce and Industry (KCCI) on Thursday termed the continuing political instability “responsible” for the economic downfall, seeking the State Bank of Pakistan’s intervention into the exchange market to stem free fall of the rupee against the dollar.
The industry players held a deliberation after the rupee nosedived “abruptly” against the dollar, Chairman Businessmen Group, Muhammad Zubair Motiwala told a joint news conference at the KCCI auditorium.
Flanked by Muhammad Idrees, President KCCI and dozens of other members, he said that the political instability is the primary and wider reason behind economic downturn in the country.
He said that importers, exporters and small traders are in a “deep hole” and confused whether they should continue their businesses amid a free fall of the rupee value.
“We are ready to talk to the opposition and the government to help end the political instability and let them know as to how run the country,” he said that though the present situation is “alarming”.
He also blamed the mishandling of economy for last six years, which pulled down the rupee value, saying that it has peaked now. He urged both the government and opposition to find an out of the box solution. He said that politics should be separated from the economy.
The political tug of war should end, as economic downfall will trigger industries closures, unemployment and disorder in the society, which he dubbed, “unacceptable”.
Amid the rupee’s abrupt and huge devaluation, he said that the State Bank of Pakistan failed to regulate the banks, which made mushroom profits from the currency depreciation. He also said the SBP should intervene into the exchange market to protect the rupee value.
Motiwala asked the federal government to lay down guidelines for the industry and small businesses amid the economic turmoil. “We don’t have any line of action as industry is dying down itself,” he said.
To a question, he said that the country’s businessmen community disagrees with the government’s policies with regard to the economy. “Whatever is the government doing we are not agreeing with it,” he added.
Comparing Pakistan to Sri Lanka, he called it “unjustified”, saying that a country with 220million population cannot plunge into a default like crisis since it is an agrarian society and has the potential to fight off economic recession.
However, he urged the government to help trickle down the financial benefits of the reducing global commodity prices to the consumers, trade and industry. Prices of the edible, wheat and petrol have reduced in the world market, he added.
Chairman Businessmen Group criticised the government for a blanket ban on all imports, which he said, troubled the manufacturing process.
He said that banning import of luxury goods may help economy but disallowing machinery parts and industrial raw material will have negative impacts in the long run. He demanded of the government to permit imports of raw materials.
Aqeel Karim Dhedhi, a leading businessman, proposed the government to freeze the dollar at its original value for the next two weeks to help the economy sustain.
Motiwala said that the KCCI held such a deliberation for the first time in its history because of the “stagnant” situation.
Copyright Business Recorder, 2022
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