LAHORE: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Irfan Iqbal Sheikh and Regional Chairman Muhammad Nadeem Qureshi said that import payments not being cleared swiftly by State Bank of Pakistan are resulting in disruptions in industrial production; unbearable demurrages & container charges; loss-making delays in the fulfillment of export orders; inflationary pressures in the domestic markets and compounding of discouraging investor sentiments.
President FPCCI has categorically refuted the claims and assertions made by SBP that there are no restrictions on importing raw materials.
FPCCI Chief explained that due to the unavailability of foreign exchange, continuous rupee depreciation, speculative trading, and delays by SBP, manufacturers and commercial importers are in jeopardy and exports have started to fall. He added that the country would suffer due to the dwindling exports, increasing trade deficit and yawning current account deficit (CAD).
Irfan Iqbal Sheikh has maintained that SBP has failed in exercising its constitutional duties of effectively regulating the commercial banks through various policy tools at its disposal, and commercial banks are making windfall profits through speculative trading of dollars. FPCCI has repeatedly reminded SBP, in no uncertain terms, of their responsibilities to control commercial banks, but, he added, it is always unfruitful & goes in vain.
Muhammad Nadeem Qureshi pointed out that there are still difficulties in opening LCs with commercial banks under chapters 84 & 85 of the customs tariff; despite the claimed circular issued by SBP to the commercial banks, which reflects badly on SBP’s ability to implement its regulatory role. However, he emphasized that SBP has all the means and policy tools to implement its decisions & circulars.
Nadeem Qureshi highlighted that despite taking responsibility for its failure, SBP has resorted to blaming the industrialists and their representatives. They are already under unprecedented strains due to various other factors in addition to the dearth of dollars in the banking channel.
He added that FPCCI sees SBP’s conduct as detrimental to industrial growth, an utter lack of responsibility, insensitivities to people’s sufferings due to depleting employment opportunities, debilitating inflation and counterintuitive coupled lack of initiative to fulfill its mandated duties.
Copyright Business Recorder, 2022