PESHAWAR: The business community in Khyber Pakhtunkhwa on Monday warned that if the “worsening” economic crisis in the country continued, then industrial units would close down and the people would struggle to make both ends meet.

Participants of a joint meeting of trader bodies here complained about the government’s ‘flawed’ economic policies and the banks’ denial to issue letters of credit for imports had badly impacted businesses.

They said if steps for the revival of the economy were not taken without delay, then the country would default on loans.

The participants observed that industrialists, small traders and shopkeepers faced enormous difficulties because of the government’s ‘anti-business’ policies.

They said doing business had become difficult and rather impossible under the prevailing circumstances.

Chamber chief says mini budget govt’s unwise move

Sarhad Chamber of Commerce and Industry president Mohammad Ishaq said traders should be given financial support amid economic instability in the country.

He said the presenting of “mini budget” would be an unwise step on part of the government in the current circumstances, so the government should review its decision about it in the best interest of the poor people and traders.

“The rising dollar rate and petroleum, gas and electricity prices are the undeniable evidence of the government’s failure to manage the country’s economic affairs,” he said, according to a statement.

The SCCI chief said the rising prices of electricity, gas and petroleum products, essentially hike in policy rate by State Bank of Pakistan with banks margin at 20 percent had further aggravated the present feeble economic conditions.

Mr Ishaq said without consulting the business community and other stakeholders, the federal government had made tall claims about putting the economy on the right track and its measures taken to “improve” the economy didn’t yield positive results.

“Our economic situation is worsening fast,” he said.

The SCCI chief said that the government was ready to present a‘mini-budget’, with heavy taxes to be collected from the poor people.

He said the ‘mini-budget’ would increase the prices of electricity, gas and petroleum further damaging businesses, industries and exports.

The chamber chief said that the federal government was responsible for the current economic mess and that it didn’t even bother to consult the business community on how to fix the economy.

Published in Dawn, January 31st, 2023