HYDERABAD: President Hyderabad Chamber of Commerce and Industry (HCCI) Adeel Siddiqui has said that agreement with International Monetary Fund (IMF) was encouraging for the country as it could address some economic issues confronting Pakistan’s economy.
He, however, emphasized that future caretaker and new government would have to comply with this programme.
He urged prime minister to take this IMF programme as last one and focus revival of economy round the clock failing which Pakistan would bear with $8bn losses every year.
In a statement issued here Monday he said that those dealing in import and exports sector understand clearly that this would help resolve imports related issues. He said imports sector had been struggling in absence of this IMF deal and remarked that “we are borrowing money from IMF that we have to return along with markup.
This has increased our burden further”. But, he said, since economic activities had stalled thus this borrowing had become inevitable. He said that unemployment that was becoming imminent would be avoided to improved imports and exports and industry would also perform. He said that demurrages that were being borne by importers on shipments until recently would be covered with dollars’ availability.
HCCI Chief said people now hope that imports would now improve with dollars availability and this had also affected supply chain thus causing hike in prices. He said that this hike in prices might decline now.
He said that it would be unrealistic to expect that this latest development would make gas or electricity tariff cheaper or that interest rate would drop. He said IMF would provide $3bn besides other lending agencies’ assistance as these agencies had linked their loan with IMF’s nod.
Adeel Siddiqui hoped that Pakistan would have been having $10bn by next year. He said that export companies that were dependent on raw material imports would increase their production. He stressed that Pakistan should devise policy for lessening Rs2600 billion or $8bn deficit inclusive of energy sector’s Rs600bn, Pakistan Railways’ Rs200bn and Pakistan Steel Mills’ Rs206bn.
President HCCI said that for overcoming PIA’s state of financial affairs a strong policy was need of the house. He said that spending $8billion on loss earning entities would not be advisable thus reform process should be taken in hand immediately so that Rs2600bn annual deficit could be overcome.
He said that it would help revive economy. He said reforms he was suggesting would help fix issues of 80 loss earning entities that makes Pakistani economy struggle.
Siddiqui proposed that all such institutions should be privatized in the first instance and government should not take any pressure in this regard. He said PM should focus on revival of economy after this IMF programme which should be taken as last one.
He said that unless it happened Pakistan would keep seeking loans to meet Rs2600bn annual deficit to run loss earning enterprises therefore policies that could revive sinking economy should be framed.
Copyright Business Recorder, 2023
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