KARACHI, Jan 3: Political crisis in Islamabad caused deep uncertainty among the investors, exporters, manufacturers and traders who said a new front has been opened amidst many severe crises prevailing in the country.
While the government in Islamabad is struggling to survive after losing majority in the parliament, the economic leaders said they see a disastrous impact of uncertainty as they would stop functioning in a wait-n-see condition.
“I have already started receiving calls from abroad since the importers want to know the future of their orders,” said Salim Parekh, exporter and chairman Pakistan Hosiery Manufacture Association. He is a former chairman of Site Association of industry.
He said the new political crises would certainly produce worst results for the entire economy.
He said it was hard to satisfy the buyers when this kind of situation develops. The manufacturers said they have lost thousands of working hours due to bad law and order situation and this could be further aggravated if this crisis is not resolved in the earliest moment.
Korangi Association of Trade and Industry chairman Johar Qandhari said the situation is highly critical since the economy is already in turmoil.
“In the presence of issues like RGST, loadshedding of gas, price escalation of electricity and petrol, the uncertainty will simply add to the misery of the ailing economy,” said Qandhari.
He said all economic indictors show that the economy is facing worst situation which means the country is not in a position to face yet another crises, which is political but have great implications for the economy.
Most of the economic managers were worried over law and order situation as they say Karachi has been a victim of worst disorder. “No one will think to put his money for a new project or new venture. I can see more unemployment and more deterioration of economy,” said Qandhari.
Manufactures were more worried as they said the inflation and worsening law and order situation hit them hard. They said if the political crisis continues for another 10 to 20 days the economic fallout would be enormous.
“I have many questions in my mind but the biggest is that how we will survive under this terrible situation where the government is inflating economy by borrowing heavily from the State Bank and law and order situation is adding cost to our production,” said Aamir Aziz, an exporter and manufacturer of readymade garments.
He said it is not possible for him to operate without paying 'additional taxes' to politically motivated extortionists who adds to the cost of production. He said poor law and order situation is responsible for this kind of politically motivated criminal activities.