President Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain has said that political instability is hitting exports, local and foreign investments which is not in the national interest. He said that unprecedented loans have enabled the economy to withstand internal and external shocks however low revenue collection, exchange rate volatility, budget deficit and tensions on Kashmir issue can drag the economy down.
He noted that the Governor SBP has claimed economic stability which should result in softening of policies. If the claim is right then policies to discourage demand should be relaxed and focus on stability has discouraged economic activity, crippled large scale manufacturing, paralyzed vending industry and left markets without customers, he said.
Mian Zahid Hussain said that interest rate hike and other steps have damaged the businesses while forex reserves have improved with the help of loans from friendly countries and IMF.
He said that inflation has jumped from 3.8 percent to 9 percent while the high interest rate and devaluation has damaged the masses and the private sector which is reducing the GDP.
The interest rate has jumped from six percent to 13.25 percent in one year which has pushed banks to invest in government papers and avoid the private sector while the government has borrowed Rs 1.37 trillion in the first month of new fiscal year which has raised concerns.
The private sector borrowing has come down from Rs 618.2 billion to Rs 607.5 billion and according to chairman FBR, the revenue collection during the first two months reduced by 10 percent.
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