HYDERABAD: President Hyderabad Chamber of Commerce and Industry (HCCI) Adeel Ahmed Siddiqui has said economic indicators were telling a dangerous story which was sufficient enough to set alarm bells ringing and urged government to find out solution to problems without delay.

He said that apparently the country was heading towards ‘dead economy’.

In a statement issued here on Tuesday he said that government had announced 100pc waiver in cash margin for importers to open letter of credits (LCs) on 100 items. But, he said, that commercial banks were opening only 20pc LCs against actual demand of raw material.

He added that it appeared that it was only a point scoring that was being done by government whilst ground reality remained different.

HCCI Chief said business community observes economic conditions closely to see how these conditions were progressing. He said economic situation was hidden to none.

He added that today dollar’s conversion rate stood at Rs289 which was largely on account of unavailability of dollar in the country.

Adeel Siddiqui said that government’s announcement of waive of 100pc cash margin was benefitting neither importers nor industrial sector.

He said that non availability of raw material was leading to price hike in the country whereas national kitty faces paucity of foreign exchange.

He said that this could lead to more price hike and inflation in upcoming month. He said rupee may face more devaluation considering the fact that economic conditions were not encouraging.

HCCI Chief said government should come up with a better policy for imports and LCs that were being opened for different items should not be stopped.

He said that increasing interest rate was enemy of progress because increasing cost of inputs would lead to more price hike. He said that people seemed interested in investment in fixed deposits for security of their investment.

Siddiqui said country was heading towards dead economy and such decisions were economic murder of salaried class which was facing problems continuously.

Copyright Business Recorder, 2023