PBF warns next 12 months tough for economy

KARACHI: Pakistan Business Forum (PBF) has warned that next 12 months could be crucial for Pakistan’s economy, urging the government to come up with out of the box solutions to cater to economic needs.

The forum has demanded to fix the dollar rate for next six months, proposing the State Bank of Pakistan (SBP) to step in and offer to swap the dollar funds into the rupees cheaply for borrowing banks.

“The rupee is depreciating on a daily basis with an iron speed. The business community is unable to understand how to survive in these extraordinary days,” said PBF senior vice president Muhammad Riaz Khattak.

He rejected the finance ministry notion that political unrest was hurting the country's financial stability through exchange rate depreciation and less investment, and demanded government actions to cater to the situation.

“We need your out of box solutions, regardless maintaining market confidence will be crucial.”

The SBP could raise substantial funds to $5 billion dollars as country reserves is depleting about six weeks’ worth of imports only, he added. “NEPRA [National Electric Power Regulatory Authority] on almost every hearing has revised the electricity tariffs.”

Khattak said a non-political, inclusive, sustainable, and legally-binding charter of economy was required to forge an across the board contract and unflinching commitment towards economic growth, development, and equality.

He stated that the aforementioned charter should encompass all sectors of the economy as well as the society. “Let’s work together for a prosperous, egalitarian, and industrialised Pakistan.”

PBF vice president Ahmad Jawad said they were positive that the incumbent prime minister could bring a noticeable change in the governance, administration, and delivery, but the government hasn’t impressed them with better decisions for the economy, he added.