KARACHI: Pakistan Business Forum (PBF) demands that Federal Government may declare the 2024 year of exports for better Pakistan. PBF Vice President and Chief Organiser, Ahmad Jawad says Pakistani Exports are on way up at $2.8 billion per month in December 2023 but our capacity is only $3 billion per month.
“Our goal must be export led growth to $8 billion per month through new Industry Policy under SIFC framework, however at this time we could achieve $4 billion on monthly basis and that can only be possible through effective mechanism and competitive energy tariff for the exports industry.
As building Pakistan industrial and commercial capacity for export led growth to achieve US$ 100 billion export target in five years and to achieve that country needs strong and vibrant business community working honestly for the well being of Pakistan,” he added.
He further observed that besides increasing exports and controlling imports; the government will have to take administrative measures, as a large demand of cash dollars are seen in the market.
He argued that this devaluation of the currency was dictated by the IMF through prior actions and it has nothing to do with macroeconomic fundamentals.
PBF Vice President further told that the monetary tightening and exchange rate depreciation resulted in higher inflation, public debt and debt servicing.
The empirical evidence showed that the one percent monetary tightening hiked the inflationary pressure by 1.3 percent in the case of Pakistan.
Similarly on the outlook of last year 2023, Jawad told that the year 2023 was an economically tough and unusual year for the country. In 2023, the rupee fell to 56 rupees against one dollar.
Chaudhry Ahmed Jawad said that the continuation of economic policies has become inevitable now for the country. Smart usury taxes in 2023 were breaking the backs of the public and the business community. Electricity and gas rates in 2023 were shake up of the fundamental differences in the cost of doing business.
He further told Pakistan’s economy is expected to grow at just 2.1 percent in the current fiscal year ending June 2024; now promotion of domestic products is indispensable for economic development.
The PBF official suggested to the government that the new IMF programme should be avoided in 2024 otherwise there will be more inflation.
“The country’s expenditure is 14,000 billion while the income is around 8,000 billion, which needs to be balanced.” He said SIFC needs more innovation and transparency in the tax system in 2024 is required.
Jawad also said that the PBF made it clear to the government that the current electricity tariff will have to be reduced or else there will be further deterioration in the society.
The PBF viewed, this year will be the test of Pakistan’s financial reforms. The value of the rupee will have to be fixed at 250 for the stability.
He has feared the incoming government after the general elections will not be in a position to give relief to the people. Similarly in 2024, the privatization process will have to be accelerated; it is not the government’s job to run corporations. PBF official also expects that the newly elected President FPCCI Atif Ikram will play an effective role in creating harmony among all stakeholders at the national level regarding the economy.
Copyright Business Recorder, 2024
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