LAHORE: President of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) Irfan Iqbal Sheikh on Thursday discussed prevailing economic scenario with President LCCI Kashif Anwar. President FPCCI was also concerned about the recent hike in policy rate and reiterated the need to raise voice together for the betterment of business environment.
LCCI President Kashif Anwar said that to get the economy back on track, political stability and trust-building are essential. For the greater good of the economy, all political parties must sign a Charter of Economy.
He noted that political instability and a lack of trust are two main obstacles preventing the country’s economy from growing and resultantly even the friendly nations are no longer ready to fund our economy because of the country’s political unrest.
He said that the problems will not be resolved until all the political parties sign a Charter of Economy.
“First think about the economy then something else,” the LCCI president said adding that the business community should be taken on board while formulating businesses-related policies.
He said that the State Bank of Pakistan has made another policy hike which has taken the policy rate at 21%. He warns that this can have dire consequences for the growth of trade and industry. It will adversely impact the process of industrialisation, private sector growth and result in rapid de-industrialisation across the country.
He said the LCCI is of the view that instead of trying to control inflation by increasing the interest rates, the best way to reduce inflationary pressures is by increasing domestic production, industrialisation and export growth.
Kashif Anwar said that the prevailing policy rate in Pakistan is already much higher than other economies in the region. This essentially means that access to finance which is imperative for the growth of industry and trade is already more expensive in Pakistan as compared to other economies in the region.
He said that amnesty is very important as it will bring the undeclared money into the economic circle.
He said that there is a lot of money in vaults and invested in land which should be taken out through amnesty. Earlier, all the amnesties were deliberately failed. He said that amnesty should be granted across the board and unconditionally as it can bring out $10 billion into the circulation.
He said that both the Lahore Chamber of Commerce and Industry and FPCCI have their own strengths and the joining of hands by the two institutions would bring positive change at the economic front.
FPCCI President Irfan Iqbal Sheikh said that to highlight soft image of the country is need or the hour and to achieve this goal all the chambers of commerce and industry of the country and the trade bodies would have to work hand in hand.
He said that FPCCI’s strength lies in the strengthening of its constituent institutions therefore all the chambers should work for the promotion of trade and industry.
Copyright Business Recorder, 2023