Trade body rejects EAC formation

KARACHI: Federation of Pakistan Chambers of Commerce & Industry (FPCCI) rejected the newly constituted Economic Advisory Council (EAC) on Friday, saying the government had created the council without consulting the business and trade community of the country.

“We have not been given a representation in the council, and it is counterproductive, to say the least,” FPCCI president Irfan Iqbal Sheikh said.

Sheikh maintained that FPCCI was the apex chamber of the country and its representation would provide an able and timely assistance to PM and his economic team.

He said the trade body could help the government in the matters of budget-making, taxation & tariffs, governance & administrative reforms, rapid industrialization, and textiles & allied industries.

FPCCI could help in promotion of information & communication technologies, EPZs & SEZs, export growth & import substitution, rupee-dollar parity, and small and medium enterprises (SMEs), he added.

He noted that the current account deficit (CAD) would be close to $20 billion, which was well above 5 percent of GDP. “Inflation has crossed 12 percent and heading towards 15 percent by the year end; trade deficit has crossed $35 billion in the nine months of July – March.”

He shared that KIBOR was 14.10 percent after 13 years and 6-month treasury bills at 14.99 percent after 22 years. “Interestingly, this is happening in spite of record proceeds from exports, remittances and taxes,” he added.

While proposing the imposition of an economic emergency a few days back, FPCCI president expressed his willingness to engage with the government in a productive consultative process to take on the economic challenges collectively in the broader national interest.

Sheikh urged that economic policies should not be announced in a vacuum without consulting the business, industry, and trade community.