No foreign loan unless current account deficit is reduced
Karachi, September 19, 2022 (PPI-OT):FPCCI’s Presidential candidate Atif Ikram Sheikh on Monday said the economy is continuously deteriorating raising concerns among the stakeholders.
The price of the dollar has increased by sixteen rupees in the last ten days while runaway inflation is setting new records which have compounded the difficulties of the masses, he said. He noted that it has become impossible for a large number of people to meet the expenses of health, education and food and the prices of electricity and fuel have made the situation more alarming.
Atif Ikram Sheikh said in a statement issued here that after the pandemic the policies of the IMF are making big holes in the pockets of the masses resulting in anxieties and frustrations.
He said that the pressure on the rupee is constantly increasing, due to which some people are again expressing fears of the bankruptcy of the country. The rupee remained depressed during the whole week and lost its value in every trading session. It was mainly owing to growing payment pressure as well as a strengthening dollar against other currencies.
Floods have devastated the agriculture sector and damaged overall economy, putting pressure on the economic indicators of the country including its currency. The major dent came from the flood-hit cotton crop. Now textile millers are exploring import options in the world cotton markets to keep the local industry’s wheels moving which will require sizable foreign exchange.
The situation in Afghanistan is having a negative impact on the economy which has disturbed the business community and they are reluctant to take important decisions which are affecting the business environment, he observed.
The business leader said that friendly countries have refused to give loans. While the situation in the global bond market is also unsatisfactory and it is not possible to get loans from there.
Pakistan will not get foreign loans and will be unable to strengthen its currency unless the current account deficit is controlled and important economic decisions are not taken without considering the political cost.
For more information, contact:
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
Federation House, Main Clifton, Karachi, Pakistan