LAHORE, Jan 6: The Lahore Chamber of Commerce and Industry has described the State Bank of Pakistan quarterly report that mentions a significant drop in GDP growth from its target of 7.2 per cent to 6.6 per cent as an eye opener for all those who matter.
Expressing grave concern over the report, Chamber President Mohammad Ali Mian said it was enough to prove that the existing fiscal policies of the government had failed to yield results and there were little chances of improvement in the grave economic situation unless and until prompt corrective measures were taken.
He said without such measures a significant deterioration in all key fiscal indicators and the resulting imbalances could have adverse consequences for the country’s economy. The deceleration in textile exports’ growth was a major area of concern as it employed 38 per cent of country’s total labour force, contributing 27 per cent of value addition, and had 67 per cent share in total exports, he added.
He urged the government to immediately convene a meeting of all the economic experts and the presidents of commerce and industry chambers in the country so that new policy guidelines could be evolved to avert the situation.
The risks to the economy, he said, were increasing as it was clear that neither the global nor the domestic economic environment was as benign as it had been in the past years.
He pointed out that the chamber had been calling for steps to improve law and order situation for the last many years but no serious effort was made for the purpose. The deteriorating law and order situation, he said, had adversely impacted foreign investment as the number of investors had gone down by 25-30 per cent as compared to that last year and added that Pakistan was fast losing its business credibility in the international market.
He also called for immediate action to offset the inflationary pressure which now had started taking its toll.
piaf: The Pakistan Industrial and Traders Association Front (PIAF) has criticised the policymakers for their failure to give ‘proper guidelines’ to concerned government departments to resolve the crisis ensuing former prime minister Benazir Bhutto’s assassination on
Dec 27.
In a statement issued here on Sunday, PIAF Chairman Mian Abuzar Shad said a quarterly report by the State Bank of Pakistan (SBP) showed the economy would suffer badly if special attention was not paid to the fast falling exports and rising inflation.
The inflationary pressure was increasing with the every passing day, bringing a bad name to those sitting at the helm of affairs.
Shad said all political parties should sit together to find a viable solution to the deteriorating economic situation. The gas and electricity shortage issue would require a special attention, he added.