"We demand from the Finance Ministry to immediately intervene and make some hefty correction in Pakistani Rupee, as the business community of Pakistan is in great frustration on this continuous devaluation," said Chairman Businessmen Panel (BMP) Mian Anjum Nisar.
He said after PTI victory in general elections 2018, US Dollar once again started to slide down against Pakistani Rupee and it was expected that rupee could be stable after Imran khan took over the government, but we saw a change of 180 degree in the policy of exchange rate, instead of stability the currency was depreciated and by 14th of June 2019 US dollar was selling close to 155 against Pakistani Rupee which is a major concern for the business community and industry at large.
He said that in the context of extended depreciation country exports also remained stagnant as only merely two percent increase was witnessed. Another concern for economy is that "as of now country's total debt is around $90billion and when you depreciate one rupee, your loan would increase Rs90 billion against each rupee."
He demanded that finance minister must take onboard the business community and asked why it has been depreciating Pakistan rupee continuously and what was the background? If it's adjustment and previously it was controlled artificially then how come soon after PTI's wining the elections, dollar lost its momentum against Pakistani Rupee? he questioned. And why don't we fix the exchange rate like Malaysia did before in the previous tenure of Dr Mahathir to stabilise its economy because they knew IMF solution is not an answer and their programmes are more or less politically based from country to country.
Chairman BMP said we understand that country debt is a sever issue and government has to pay back the loans which previous governments took in order to continue the credibility of Pakistan, but is this the correct method to pay loans against fresh borrowing on monthly basis including to opt another IMF programme? This is the only solution in the hands of the Country Finance Minister; he lamented.
To start privatisation process he said and further suggested that government may sell at least 50 percent shares of the state owned companies along with management to the private sector for the repayment of country debt which could help us and in future our expenses may also go down.
"One must understand that new borrowing to repay previous loans is not an argument and you can't sell this to public if you may continue it."
Anjum Nisar while expressing his views on the austerity drive questioned the existence of so many organisations which aren't helpful to public and economy and asked why doesn't government close such organisations: TDAP, Pakistan Tobacco Board etc.. Every year Commerce Ministry rendered billion of rupees to TDAP for promotion of exports but in last ten years we didn't saw optimum contribution of this authority instead of paying salaries to their staff and bribe the small trade bodies of this country often and on.
"I think TDAP role may be shifted to FPCCI and let FPCCI conduct few exhibitions to promote Pakistani products every year and for that Commerce Ministry may release some funds to the Federation Chambers for specific purpose."
Similarly Prime Minister may share the concrete policy of the government on how to repay the previous loans instalments other than the fresh borrowing, because this confusing economic situation might stop the day to day progress of the industry and the businesses, Jawad added.
He advised Prime Minister to call monthly meetings of the Economic Advisory Council and Business Council meetings till one year at least, so that practical approach and consensus may flourish to stabilise the country economy.
It may be noted here that Prime Minister Imran Khan has constituted an 18-member Economic Advisory Council (EAC) with the induction of a few world-renowned economists to ensure the availability of best possible professional advice to the government on economic policies; as Eminent economists part of the body that will meet at least once a month to guide govt on short and long term interventions, structural reforms.