Daily Times

The Federation of Pakistan Chambers of Commerce & Industry’s Businessmen Panel (BMP) has stressed the the government to engage with the trade and industry stakeholders to formulate successful economic strategies to achieve high economic growth.

Addressing a delegation of various trade and industrial associations, FPCCI former president and BMP Chairman Mian Anjum Nisar pointed out that this collaboration is especially crucial in this economic unstable condition. It is imperative that the government involves the business community in shaping economic policies, he asserted. He argued that aligning the interests of the government and businesses is essential for creating an economic framework that is not only robust but also sustainable in the long run.

At the core of national progress lies a well-defined economic agenda, he stated, underscoring the importance of a cohesive plan to put the economy on a track of sustained growth. He stressed that economic stability is paramount for addressing various societal challenges and fostering an environment conducive to prosperity. Media reports called for a fully-fledged and sound plan with a highly competent team to handle local challenges forthwith, but unfortunately, they have no solid plans or directions.

Mian Anjum Nisar foresees this year full of challenges for businesses and industries in Pakistan due to political uncertainty on global and local fronts. The government should come up with drastic measures to give confidence to local industrialists-cum-entrepreneurs and foreign investors through industry-friendly and investment-friendly policies.

A cornerstone of the proposed economic initiatives is the advocacy for a comprehensive 5-year export policy. He emphasised that such a policy would provide a roadmap for enhancing the country’s global competitiveness. He outlined that a strategic export policy is vital for diversifying the economy, creating job opportunities, and ensuring a steady influx of foreign exchange. He said that BMP serves as a rallying cry for a united effort towards economic progress. The call for transparent economic strategies, international engagement, and a collaborative approach between the government and the business community underscores the urgency of prioritising economic development for the collective well-being of the nation. The FPCCI former president said all political parties should provide their economic stability plans to avert further losses and delays, warning that numerous global issues are impacting world economies. He said the upcoming government should prioritise resolving the energy crisis by providing sufficent and affordable electricity and gas to industries. The import bill should be reduced by imposing bans on luxury products. He highlighted controlling inflation to ensure affordable living costs for the masses and containing the cost of production for businesses at a local level.

Anjum Nisar observed that besides increasing exports and controlling imports the government will have to take administrative measures, as a large demand of cash dollars are seen in the market. He argued that this devaluation of the currency was dictated by the IMF through prior actions and it has nothing to do with macro-economic fundamentals. He said that there was a complete breakdown of economic policymaking, as the country’s fiscal policy had become subservient to monetary and exchange rate policies. He said that the monetary tightening and exchange rate depreciation resulted in higher inflation, public debt and debt servicing.

The government needs to devise a strategy on war-footing to increase foreign investment in Pakistan so as to stop the upward trajectory of the dollar, he added. The rupee during through the whole year remained uncertain, as the uncertainty pertaining to the IMF program was causing pressure on the Pakistani rupee while the country’s foreign exchange reserves have also declined, which was another source of concern for investors, he said.

He advocated for the lower markup rate to alleviate the financial burden on the business community and stimulate economic activity.

The BMP Chairman urged the central bank to implement a substantial reduction in the monetary policy rate, terming the current meager reduction in key policy rate as very depressing disappointing for the trade and industry.

The FPCCI former president said that the slash in discount rate announced recently was not enough to compete the regional countries, since the businessmen, was expecting a huge reduction in the monitory policy rate in line with the neighboring countries in view of decline in inflation, which has come down to single digit.