Long march, crackdown affect business

KARACHI - The ongoing crack down to stop the proposed long-march of lawyers and political parties has paralysed economic activities in the country especially in Punjab. The businessmen and exporters told The Nation that the administration has withheld the containers and blocked the main roads of the large province resulting in immediate stoppage of transportation of exportable goods. Director General Research and Development Department of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Dr. Ayub Mehar said the economy has direct link with the law and order situation of the country. The prevailing law and order situation was not satisfactory which was painting negative picture for the overall economy of the country, he said and added that the worsening law and order situation is directly affecting local trade. The recession in global trade has already hit the foreign trade of Pakistan, FPCCI official pointed out and informed that lot of shipping orders have been cancelled. While, the head offices of industrialist bodies are being informed that the exporters and importers are facing hardships in transportation of their goods due to blockade of main roads through containers by administration in Punjab province that has larger share in foreign trade especially of textile and other exportable commodities. The immediate effect of prevailing unrest in the country would be hampering economic activities and ultimately it will hit the overall economy within the period of month, he said. The other negative outcome of persisting political turmoil would result in stoppage of investment and local trade and the negative result on investment would be visible in next 15 to 30 days. He feared the exporters might not fulfil their commitments to provide goods on time as this political conflict would continue for an indefinite period because toppling of PML-N government and possibility of the formation of PPP-PML-Q coalition government will further ignite the protest culture in the country especially in Punjab. Initially government had set GDP growth rate at 5.5pc which was first reduced to 4.5pc and then further trimmed to 2.5 to 3pc which does not seem achievable due to prevailing political unrest and confrontation between opposition and govt. He said, "If GDP growth target was not achieved then all the financial targets such as revenue target, foreign trade and others will not be achieved in current FY2008-09" as all these targets were set on assumption of GDP growth target of 2.2 per cent. An exporter Salman Ishaq said the political unrest in Punjab would definitely affect the economy of whole country as Punjab has major contribution in textile and other foreign trade. He suggested that government should hold dialogue process with all the political parties and should resolve all political issues amicably otherwise country would face severe economic crisis in near future.

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