‘Political instability affecting economy’

LAHORE :Day-to-day worsening political situation of Pakistan has been adversely affecting the economy due to which a number of local investor groups halted their investment in various projects.

These views were expressed by the experts in the Jang Economic Session on ‘pressure on economy due to political instability’. The panellists were Dr Nadia Tahir, Faiza Amjad, Qaisra Sheikh, Farooq Tariq, Asif Baig Mirza and Muhammad Ali Mian. The session was hosted by Sikandar Lodhi.

Dr Nadia Tahir said current political situation could be termed uncertainty but the economic indicators are not much bad but if political instability continued then it will affect both economy and public. She said if the government can pass a politically motivated bill from parliament in few hours then it should also take public benefits and economic betterment decisions with same speed. She called for improving the ease of doing business. Increase in production cost is cause of unemployment while no foreign investments is in sight except Chinese.

She called for reducing the taxes from public and economic situation could worsen if timely decisions would not be taken. Faiza Amjad said investments are on standstill for the last five months due to political instability.

She said political instability is affecting both local and international brands which are delaying their investments. She said small institutions are not affected with political situation so should bring out of this syndrome. Qaisra Sheikh said political instability is adversely affecting business community while increase in petroleum prices created inflation and if timely decisions in right direction are not made the economic problem will increase. She said new prime minister steps to promote the exports is appreciating while 10 percent increase in exports during last three months is encouraging. She called for resolving business community issues on priority basis.

Farooq Tariq said political instability was not created with change of prime minister as the government policies were not changed and everything was moving accordingly. He said new prime minister was attempting to control the situation which will improve economic condition soon. He called for resolving labour issue as minimum wage of Rs15,000 was not being implemented. Asif Baig Mirza said political instability is on the rise due to multiple issues which is negatively affecting the government policies and economic growth. He demanded imposition of economic emergency. He said stock market was dropped by 24 percent in last three months and investment was declined by USD18 billion. In such situation Pakistan might need to approach another IMF programme. Muhammad Ali Mian said politics and economy are interconnected and current situation is demanding that all political parties should get united on common national economic plan. This plan should not be affected with the change of government and political instability. He said the government has given effective road map by focusing on industrial and agriculture development.