LAHORE - The government, politicians, all institutions including State Bank of Pakistan will have to play their due role to save the country from economic collapse as the “titanic of economy is sinking rapidly”.
These views were expressed by LCCI President Mian Nauman Kabir while addressing an emergent press conference at the Lahore Chamber of Commerce & Industry on Wednesday. LCCI Senior Vice President Mian Rehman Aziz Chan and Vice President Haris Ateeq also spoke on the occasion while LCCI Executive Committee members were also present. “It is a matter of concern that nobody is ready to listen the hue and cry of the business community which is the ultimate loser of the ongoing scenario”, Mian Nauman Kabir added. He said that the political instability, lack of interest by the acting governor of State Bank of Pakistan to resolve the issues of business community, unjustified taxes in electricity bills, rising inflation, trade deficit, rupee devaluation and lack of cooperation from the banks is hindering the smooth running of the businesses.
Mian Nauman Kabir said that the acting governor State Bank of Pakistan is having meetings with the particular groups of elite class instead of having interaction with the Lahore Chamber that is the major stakeholder having over 30,000 members. He said that the inter-bank dollar rate has exceeded Rs. 237 which means that the rupee depreciated by more than 12% during the last one month and 25% if calculated over three months.
The LCCI president said: “We have extended cooperation to the government but in return, the government did nothing.” He said that we have accepted the term of fixed tax but the government has started collecting sales tax in the electricity bills along with fixed tax. For example, he said, if the electricity price is Rs.2000 for a consumer then he will have to pay Rs.7000 more in the shape of tax. “I do request to the politicians”, Mian Nauman Kabir said and added that the political instability has pushed the economic issues behind the scene. He said that at a time when international community has kept a deep eye on Pakistan which is one of the most important countries of Asia, there is a dire need for political harmony to give a good message to the foreign investors as rift between the political parties is playing a role of spoiler. The LCCI president said that high inflation rate was recorded during the month of June. In the year 2021-22, the country’s trade deficit has exceeded $48 billion while the current account deficit has also crossed the mark of $15 billion during the first 11 months of the same financial year.
Mian Nauman Kabir said that our foreign exchange reserves have been dropped to $ 15 billion in July 2022 from $ 24 billion in July of previous year. He said that the industrial sector is badly affected as the industry is dependent on imported raw materials and machinery. Instead of facilitating the private sector, the banks are exploiting the business community and are charging Rs. 10 to 20 more than the inter-bank rate at the time of releasing the import shipment documents. He said that the business community is already in a deep trouble while such behavior on the part of the banks is adding fuel to the fire.
Mian Nauman Kabir said that the State Bank of Pakistan should take immediate notice of the situation. LCCI Senior Vice President Mian Rehman Aziz said that the deferred payment agreements with Saudi Arabia and China should be completed at the earliest.
“We have to convey the message to the international community that Pakistan is a peaceful and good country for trade and investment”, Mian Rehman Aziz Chan said and added that the political unrest has already caused undue damage to the economy besides tarnishing the soft image of the country as best destination for investment. Vice President Haris Ateeq said that the government, politicians, State Bank of Pakistan and all other institutions should not force business community for a strict action. He said that the politicians should resolve their issues in the parliament and evolve a joint strategy to get the country out of economic crisis.
These views were expressed by LCCI President Mian Nauman Kabir while addressing an emergent press conference at the Lahore Chamber of Commerce & Industry on Wednesday. LCCI Senior Vice President Mian Rehman Aziz Chan and Vice President Haris Ateeq also spoke on the occasion while LCCI Executive Committee members were also present. “It is a matter of concern that nobody is ready to listen the hue and cry of the business community which is the ultimate loser of the ongoing scenario”, Mian Nauman Kabir added. He said that the political instability, lack of interest by the acting governor of State Bank of Pakistan to resolve the issues of business community, unjustified taxes in electricity bills, rising inflation, trade deficit, rupee devaluation and lack of cooperation from the banks is hindering the smooth running of the businesses.
Mian Nauman Kabir said that the acting governor State Bank of Pakistan is having meetings with the particular groups of elite class instead of having interaction with the Lahore Chamber that is the major stakeholder having over 30,000 members. He said that the inter-bank dollar rate has exceeded Rs. 237 which means that the rupee depreciated by more than 12% during the last one month and 25% if calculated over three months.
The LCCI president said: “We have extended cooperation to the government but in return, the government did nothing.” He said that we have accepted the term of fixed tax but the government has started collecting sales tax in the electricity bills along with fixed tax. For example, he said, if the electricity price is Rs.2000 for a consumer then he will have to pay Rs.7000 more in the shape of tax. “I do request to the politicians”, Mian Nauman Kabir said and added that the political instability has pushed the economic issues behind the scene. He said that at a time when international community has kept a deep eye on Pakistan which is one of the most important countries of Asia, there is a dire need for political harmony to give a good message to the foreign investors as rift between the political parties is playing a role of spoiler. The LCCI president said that high inflation rate was recorded during the month of June. In the year 2021-22, the country’s trade deficit has exceeded $48 billion while the current account deficit has also crossed the mark of $15 billion during the first 11 months of the same financial year.
Mian Nauman Kabir said that our foreign exchange reserves have been dropped to $ 15 billion in July 2022 from $ 24 billion in July of previous year. He said that the industrial sector is badly affected as the industry is dependent on imported raw materials and machinery. Instead of facilitating the private sector, the banks are exploiting the business community and are charging Rs. 10 to 20 more than the inter-bank rate at the time of releasing the import shipment documents. He said that the business community is already in a deep trouble while such behavior on the part of the banks is adding fuel to the fire.
Mian Nauman Kabir said that the State Bank of Pakistan should take immediate notice of the situation. LCCI Senior Vice President Mian Rehman Aziz said that the deferred payment agreements with Saudi Arabia and China should be completed at the earliest.
“We have to convey the message to the international community that Pakistan is a peaceful and good country for trade and investment”, Mian Rehman Aziz Chan said and added that the political unrest has already caused undue damage to the economy besides tarnishing the soft image of the country as best destination for investment. Vice President Haris Ateeq said that the government, politicians, State Bank of Pakistan and all other institutions should not force business community for a strict action. He said that the politicians should resolve their issues in the parliament and evolve a joint strategy to get the country out of economic crisis.
