BMP demands immediate reforms to overcome economic downslide

The Businessmen Panel (BMP) of the FPCCI on Friday demanded immediate reforms including improvement in the tax system, energy supplies, and sell bleeding state-run enterprises wasting trillions of rupees per annum to overcome the economic downslide.
Naseem-ur-Rehman, a central leader of the BMP said the reforms process must not be delayed as it will have a negative impact on the economy which is already facing many troubles including twin deficit and difficulty in debt serving. The current account deficit more than doubled in the fiscal year ending June 2017 (FY17) to 4.1 percent of the GDP, from 1.7 percent in FY16, largely owing to a surge in imports.
The widening of the current account deficit has been much larger than government's expectations. Meanwhile, official reserve assets fell from a peak of $22.8 billion in October 2016 to $16.8 billion in November 2017 (including gold), The SBP began to allow more currency flexibility on 8 December and the rupee has since dropped by nearly 5 percent against the US dollar that has sent shock waves in the business community and general public.
He said the economy needs cash which is fast disappearing, therefore, the government should try to get a loan from friendly countries or the institutions which do not attack tough conditions to the loans and keep the loan from the IMF as a last option and negotiate it in a way to keep economy and masses from the tough conditions of the lender including devaluation of Pak Rupee.
He warned that any further erosion in the exchange rate on the directives of IMF will amount to economic suicide as it will result in the closure of businesses, unemployment and defaults by the businesses, lack of competitiveness which will destabilise the balance sheets of the commercial banks.
The business leader admitted that government had done a lot to put the economy back on track, improved the direction of the economy, upgraded infrastructure, enhanced energy supplies which have boosted the confidence of the business community. But all these achievements should not be reversed by not introducing the urgently needed economic reforms.