Daily Times

Islamabad Chamber of Commerce and Industry (ICCI) President Ahsan Zafar Bakhtawari on Tuesday said the International Monetary Funds (IMF) agreement was inevitable for a sustainable economic base in Pakistan.

However, the government would have to take decisions keeping in view the country’s economic recovery, he said in statement.

Ahsan Bakhtawari said,” The business community believes that the IMF agreement is indispensable for the country and Finance Minister Ishaq Dar has negotiated with the Fund as a real national leader and spokesman for the aspirations of the Pakistani nation.

“He emerged as a true national hero by not compromising on national interests during the long period of negotiations, but it is our misfortune that at last he also had to accept the tough conditions of the IMF to save the country economically,” he added.

The ICCI president said the trust of friendly countries and international organizations would be restored by the IMF agreement. However, instead of burdening the people or the business community, the government should find a middle way.

To get out of the economic crisis, the government should formulate short, mid and long-term policies, he added.

He said the business community had been supportive of the government’s initiatives, which should adopt such measures to provide a conducive environment for business.

He said the business community across the country, including the ICCI, had demanded reduction of the interest rate in the budget proposals, which was supported by the parliamentary committees and Finance Minister Ishaq Dar.

However, after the budget’s approval, the State Bank had increased the interest rate by one percent, which “will bring more difficult times for the economy”, he added. It would negatively affect the industrial production, besides decreasing employment opportunities, the ICCI president said.

He urged the Federal Government to take back its decision of withdrawing amnesty scheme, which was announced to meet the shortage of dollars in the country. Those who wanted to bring back dollars, should be provided facilities, he added.

He said the property and construction sector was working beyond its capacity to meet the needs of employment, revenue and housing. The government had taken the best decision by giving incentives in the budget, but now the tax “on this sector has been increased which is harmful to development”, he added.

Instead of collecting more revenue from the people already in the tax net, the government should take steps to increase the tax net, he urged.