(10 October, 2018)
President Pakistan Businessmen and Intellectuals Forum (PBIF), President AKIA, Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister, Mian Zahid Hussain on Wednesday said that worsen economic situation, huge current account deficits, declining foreign reserves and decision to avail another bailout package from IMF has resulted in appreciation of USD by 8 percent. USD is expected to be further appreciated by 9 percent given to availing IMF loan. The decision has also badly affected the stock exchange. On October 8, the PSX-100 index has declined by 1328 point exposing investors to losses of millions of rupees.
The veteran business leader while talking to the business community said that recent measures of Government will further worsen the difficult economic situation going on in the Country. The cost of doing business has highly increased, adversely affecting the industrial production and business activities. Exports can be increased but for a limited time. The depreciation of PKR will lost its effect on exports in long run. To attract foreign investment, currency stability is vital; else foreign investors will be compelled to take out their money from local businesses. To encourage investors, it is largely required to form long run positive policies, in support of investment, industrialization and currency stability.
The former minister said that to improve the Country’s export on sustainable basis, center specific companies need to be established under the leadership of internationally recognized experts. Each Company will be responsible for increasing its respective share in the international markets and accessing new markets available in its specific field. The Companies will be responsible for branding, value addition, research, processing, certification, financing and quality control of their respective products.
Mian Zahid Hussain said that economic growth is not possible without attaining political stability; the ongoing political instability should be curbed for the betterment of economic situation. Eradicating corruption is a must but Government should take apposition and political parties in confidence before going into major decisions. According to the State Bank, the foreign reserves has declined by $ 1.2 billion during September, 2018, despite increase 13 percent increase in foreign remittances in the first two months of current fiscal year.
Mian Zahid Hussain said that the Government itself stated several times against the foreign aids and loans. For sustainable economic growth in the Country, forming long term policies in support of expanding economy and exports development are mandatory.