LAHORE: President SAARC Chamber of Commerce and Industry Iftikhar Ali Malik Monday urged the International Monetary Fund to release its bail out package programme for Pakistan forthwith in the wake of billions of dollars guarantee by UAE and Saudi Arabia as inordinate delaying has negatively affected investor confidence, increased inflation, and hindered growth prospects.
Talking to a delegation of industrialists and traders led by Mian Ejaz Ahmad Arain CEO The Falcon International here said Pakistan’s worsening economic situation amid its continuing political turmoil is critical and calls for bold and timely action by policymakers. He said the economic crisis has adversely affected its human development indicators, including poverty, education, health, gender equality, and environmental sustainability.
Iftikhar Malik also said that high rate of inflation, a weakening currency, and dangerously low foreign exchange reserves, along with the high cost of doing business, have intensified the grim economic outlook. He said the economic crisis could deepen if the International Monetary Fund (IMF) bailout is delayed further as foreign exchange reserves are at a historical low.
Iftikhar Ali Malik said the current account deficit is expected to soar further as import restrictions on some of essential items have been lifted after many months. Food and fuel prices are soaring with the weekly inflation outlook standing at 45.4 percent while the currency depreciates.
He said Pakistan’s economy is in dire straits and still awaiting a much-needed US$1.1 billion tranche of funding from the Washington-based International Monetary Fund (IMF) despite fulfilments of all required obligations. He said in prevailing scenario, IMF must release the bail out package immediately without further loss of time to help strengthen the Pakistan national economy and steer the country out of monetary quagmire.
Copyright Business Recorder, 2023
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