LAHORE: President of the Lahore Chamber of Commerce and Industry (LCCI) Kashif Anwar on Thursday lauded the government for the approval of a substantial $3 billion Standby Arrangement Programme for Pakistan.
He said that the financial assistance will enable Pakistan to address pressing economic challenges while laying the groundwork for sustained growth and stability.
In a statement, Kashif Anwar highlighted that the agreement reached will effectively curb further devaluation, resulting in a subsequent reduction in inflation. He emphasized that this agreement holds the potential to alleviate the ongoing liquidity crisis and potentially lead to a more relaxed approach to import restrictions. He said that the IMF programme would strengthen the confidence of financial institutions and would create opportunities for increased FDI.
He said that the further impacts of this agreement would be seen as it will reinforces Pakistan’s economic position but also signals international confidence in the country’s reform efforts. It is anticipated that these measures will pave the way for improved economic stability, ensuring a brighter future for Pakistan’s citizens.
He said that the impacts of this agreement would stabilize the economy for now, guard against potential shocks, and creates room for social and development spending.
He said that in addition to the IMF funding, Pakistan recently received $1 billion from the United Arab Emirates and $2 billion from Saudi Arabia. These financial inflows are significant as Pakistan has been grappling with a severe shortage of foreign currency and has been on the verge of default.
President LCCI also called for concerted efforts to expand the tax base and said that without expanding the tax net, government revenue will not increase.
He also stressed the need to address the issues faced by industry e.g. curbs on imports, non-opening of LCs by banks and also the disparity between the rates of the US dollar in the open market and the interbank.
Copyright Business Recorder, 2023
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