Secretary General (Federal) of the Businessmen Panel (BP) and former chairman Standing Committee of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI), Ahmad Jawad has said continuously desperation in rupee, hike in interest rates and increase of cost of doing business were a major blunders of the incumbent government, as it has been proved in 70 years when currency was devalued it couldn't revert back with a major correction.
In a statement issued here on Sunday, Ahmad Jawad said, "I think history will determine the course of action regarding Minister of Finance in this regard."
He said the business community seeks some out of the box solution but these measures hit the traders and industrialists at large, how one can get relief from this, he questioned.
The BMP secretary general said first devaluation undertaken by the incumbent government sent a jolt through the economy, briefly restored some confidence, before it waned once again (more on that in a moment). The second devaluation, he said which was considerably more disorderly in the wild swings its generated, and accompanied by one of the sharpest interest rate hikes in many years (frankly I can't recall the last time we saw a 150 basis point hike in a single stroke since 2008), has jolted the economy and the government alike.
Ahmad Jawad said the government has obtained Rs 3,500 billion record loan during its six months. The inflation is increasing day by day due to right person not on the right job.
Similarly incumbent government has presented third budget in the Parliament during its six months and increased the prices of electricity, oil and gas products and other commodities many times. Now, the government, once again, is going to increase the price of electricity, he said. "We strongly condemn the government on these actions and urge to take measures for the relief of the common people.
If we take a look, Pakistan exports and FDI only grew by 140 percent and 160 percent respectively, in last two decades. While in India, exports and FDI saw a tremendous growth of 719 percent and 1627 percent and Bangladesh both indicators grew by 680 percent and 800 percent respectively. In terms of 'corruption' and 'governance', India and Bangladesh are neither more transparent nor more efficient than Pakistan. The only difference is continuity of policies; he added.
Jawad further said in 2019, where are we heading; Large scale manufacturing has contracted for first time in over seven years, agriculture sector is under performing due to increase in the prices of inputs particularly fertilizers, wholesale and retail sectors are under performing due to lackluster industrial activity and massive devaluation, transport and logistics sector is depressed, inflation is increasing rapidly and highest since 2015, cost of doing business is sky high.
He said the circular debt has increased from Rs 1.1 trillion to Rs 1.4 trillion at twice the rate than what it was PML-N government. FBR is facing record shortfall in revenue collection of Rs 237 billion in first eight months. S&P has downgraded Pakistan's credit ratings to B-, after achieving thirteen-year high growth of 5.8 percent in 2018, Pakistan's economy is now headed for around 4 percent growth and even less for coming years. India's economy is growing at an average of 7 percent for last several years, Bangladesh's economy is growing at 7 percent, and can we afford to grow at 4 percent, he questioned.