KARACHI: The Korangi Association of Trade and Industry (KATI) President Johar Qandhari has expressed deep concern over the International Monetary Fund’s (IMF) forecast that the trade deficit will exceed $27 billion in the coming financial year.
Qandhari attributes the widening trade deficit to increased production costs, the highest interest rates in the region, and stagnant export growth. He emphasized the difficult conditions faced by industrialists, noting that the high cost of doing business is hampering industrial growth.
Qandhari called for the government to swiftly implement an economic policy that includes reducing the interest rate to single digits. "The sky-high prices of electricity and gas need to be brought down to promote industrialization, set up new industries, eliminate unemployment, and accelerate economic activities," he said.
The KATI President also urged the government to develop a long-term economic policy in consultation with industrialists. He stressed that reducing energy and production costs is crucial to boosting exports immediately. Additionally, Qandhari advocated for measures to control imports and reduce dependence on foreign goods by increasing duties on import of unnecessary and luxury items.
Qandhari remains optimistic that, with the right policies developed in collaboration with the industrial sector, the government can achieve results that contradict the IMF’s grim projections. "If the government formulates a policy in consultation with industrialists, we can see outcomes that defy the IMF's estimates," he concluded.
Copyright Business Recorder, 2024
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