Anjum Nisar and Faheem Saigol call on the government to take the economic crisis seriously

ISLAMABAD, JUL 23 /DNA/ — The Pakistan Industry and Trade Associations Front (PIAF) has called on the government to establish an Economic Crisis Management Council in close consultation with the business community, in line with the National Command Center and of Operations (NCOC) formed during the corona virus period or National Disaster Management Authority formed in case of flood emergency as the country faced severe economic crisis mainly due to political instability .

PIAF Chairman, Faheem Ur Rehman Saigol, accompanied by PIAF Chief Boss and Chairman of the Businessmen’s Group (BMP), Mian Anjum Nisar, during a press conference held at the PIAF office on Saturday, underlined the need to take the economic crisis seriously, asking the authorities to form an economic team council, comprising financial and economic experts from the country supporting the FPCCI, the Grand Chambers and the PIAF to tackle day-to-day to the problem of the business community in the context of galloping inflation and the enormous depreciation of the rupee against the dollar. Pakistan must get rid of the IMF and increase its reliance on indigenous resources as borrowing and bailouts have pushed the country into a debt trap, he added.

Disturbed by the ongoing political uncertainties followed by an unprecedented depreciation of the rupiah against the dollar, the PIAF chairman urged the Treasury and the opposition to resolve the issues through talks, as the unrest creates unstable economic conditions , calling for controlling the instability of the rupee against the US dollar.

Faheem Ur Rehman Saigol feared that the country’s political climate has become unpredictable due to political uncertainty, reducing the level of investment and affecting the country’s economic growth, suggesting the government as well as opposition parties to settle the problems through talks, that the right way to solve the problems.

Furthermore, he observed that the dollar continued to appreciate against the rupee, also due to the higher current account deficit and soaring import bills. In addition to increasing exports and controlling imports, the government will have to take administrative measures.

Chief Boss of PIAF and Chairman of Businessmen Panel (BMP), Mian Anjum Nisar, addressing the press conference, said that this situation could create unstable economic conditions, generating higher risks and turning into a low investment while inflation is one of the main sources of uncertainty. . The high inflation rate leaves the nation uncertain about potential investments, he added.

He said the government should announce the economic emergency as the country was facing severe economic challenges with an unprecedented depreciation of the rupee against the dollar.

He said Prime Minister Shehbaz should immediately call a meeting and invite all political parties to make day-to-day decisions on the economy, he said.

Pakistan is going through a severe economic crisis and unfortunately major political parties have not come up with any effective measures to save the economy, he said.

We are deeply concerned about the government’s reckless attitude to the current economic challenges, heightened political uncertainty, steep devaluation of the rupee, the ineffective role of the State Bank of Pakistan and unregulated bank profits. he declared.

He demanded that the governor of the SBP be appointed as soon as possible to manage the affairs of the central bank.

Anjum Nisar expressed serious concern over SBP’s indifferent approach to controlling the current rupee devaluation and demanded that it take urgent action to control the rising rupee-dollar parity as the dollar has reached the highest ever rate of Rs230, which is negatively affecting business activities and industries are now on the verge of collapse due to the ever-increasing cost of production.

He said that due to the high rate of the dollar, imports have also become more expensive, which makes it difficult to manage the industries.

Banks open L/Cs at the rate of 242 and above for oil companies, with no interbank rate.

Attacking the exploitation of commerce and industry by the banking sector, the PIAF leadership called on the State Bank of Pakistan to intervene immediately as commercial banks are not tracking the interbank rate amid constant slide of the local currency against the US dollar, creating a situation of panic in the country.

Currently, the interbank rupee-dollar exchange rate hovers around 228-230, but commercial banks arbitrarily charge between 235-242 rupees against the greenback, they said.

PIAF management also criticized the late notification of the release of containers of imported goods that were prohibited by SRO 598(I)/2022. They said importers were further affected by heavy demurrage and detentions which caused severe distress among them.

Importers have strongly denounced the non-clearance of containers at ports following the ban imposed on luxury items. The ban was imposed on 85 categories of luxury items under SRO 598(i)/2022 which was issued on May 19, 2022.

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