The Lahore Chamber of Commerce and Industry (LCCI) has urged the government to divert all its resources in converting the existing consumer-led growth into an export-led growth that certainly would help contain widening current account deficit.
LCCI President Shahid Hassan Sheikh, Senior Vice-President Yaqoob Tahir Izhar, and Vice-President Mubasher Sheikh, in a statement issued here on Tuesday, said it is also essential to control food inflation; the SBP has already controlled the core inflation through its monetary policy. They said the government would have to strengthen regulatory institutions.
They said the high input cost is also contributing to decrease country's exports and there is a need to bring down cost of doing business. This could only be done by adopting alternative energy generating resources. The State Bank of Pakistan (SBP), in its annual report, warned of further inflationary risks, saying the current account deficit is the biggest challenge for the government in the face of soaring oil prices, low export growth, and strong import demand.
The LCCI office-bearers said that enhanced production would help ease out inflationary pressures and increase much-needed export growth. This would keep the domestic inflation close to the annual target in the future as well.
They also stressed the need for implementing the policies, which are coming in the way of economic prosperity of the country. They said frequent increases in the prices of energy have increased the cost of doing business, which has made it difficult to compete in the international market. Pakistan's major competitors are China and India who have the advantage of indigenously produced raw materials, highly skilled labour, and low utility prices.
A major chunk of POL prices in Pakistan consists of government levies, which needs to be reduced, they said, adding the rule of law is a pre-requisite for development of any country. Unfortunately, the law and order in the country is not satisfactory which is scaring investment.