Govt, politicians, institutions & SBP: LCCI chief for making joint efforts to get country out of the economic mess

LAHORE: The government, politicians, all institutions including State Bank of Pakistan will have to play their due role to save the country from economic collapse as the “titanic of economy is sinking rapidly”.

These views were expressed by Lahore Chamber of Commerce & Industry (LCCI) President Mian Nauman Kabir while addressing an emergent press conference at the LCCI on Wednesday. LCCI Senior Vice President Mian Rehman Aziz Chan and Vice President Haris Ateeq also spoke on the occasion while LCCI Executive Committee Members were also present.

“It is a matter of concern that nobody is ready to listen the hue and cry of the business community which is the ultimate loser of the ongoing scenario,” Mian Nauman Kabir added.

He said the political instability, lack of interest by the Acting Governor of SBP to resolve the issues of business community, unjustified taxes in electricity bills, rising inflation, trade deficit, rupee devaluation and lack of cooperation from the banks was hindering the smooth running of the businesses.

Mian Nauman Kabir said the Acting Governor SBP was having meetings with the particular groups of elite class instead of having interaction with the Lahore Chamber that was the major stakeholder having over 30,000 members.

He said the inter-bank dollar rate had exceeded Rs 237 which meant that the rupee depreciated by more than 12 percent during the last one month and 25 percent if calculated over three months.

The LCCI President said “we have extended cooperation to the government but in return, the government did nothing and adding to the miseries of the business community.

He said “we have accepted the term of fixed tax but the government has started collecting sales tax in the electricity bills along with fixed tax. For example, he said if the electricity price was Rs2000 for a consumer then he would have to pay Rs7000 more in the shape of tax.

“I do request to the politicians,” Mian Nauman Kabir said, added the political instability had pushed the economic issues behind the scene. He said that at a time when international community had kept a deep eye on Pakistan which is one of the most important countries of Asia, there was a dire need for political harmony to give a good message to the foreign investors as rift between the political parties was playing a role of spoiler.

The LCCI President said the inflation the 21.3 percent inflation rate was recorded during the month of June. In the year 2021-22, the country’s trade deficit has been exceeded $48 billion while the current account deficit has also crossed the mark of $15 billion during the first 11 months of the same financial year.

Mian Nauman Kabir said that “our foreign exchange reserves have been dropped to $15 billion in July 2022 from $24 billion in July of previous year.”

He said the industrial sector was badly affected as the industry was dependent on imported raw materials and machinery. Instead of facilitating the private sector, the banks are exploiting the business community and are charging Rs 10 to 20 more than the inter-bank rate at the time of releasing the import shipment documents. He said the business community was already in a deep trouble while such behaviour on the part of the banks is adding fuel to the fire.

Mian Nauman Kabir said the SBP should take immediate notice of the situation.

LCCI Senior Vice President Mian Rehman Aziz said the deferred payment agreements with Saudi Arabia and China should be completed at the earliest.

“We have to convey the message to the international community that Pakistan is a peaceful and good country for trade and investment,” Mian Rehman Aziz Chan said, adding the political unrest had already caused undue damage to the economy besides tarnishing the soft image of the country as best destination for investment.

Vice President Haris Ateeq said the government, politicians, SBP and all other institutions should not force business community for a strict action.

He said the politicians should resolve their issues in the parliament and evolve a joint strategy to get the country out of economic crisis.

The LCCI office-bearers said the country, at that point in time, was in dire need of economic stability and to achieve the very objective, both the politicians and the business leaders would have to join their heads for finding out a common economic agenda.

Copyright Business Recorder, 2022