Businessmen Demand to Impose Economic Emergency and Fix Exchange Rate

Chairman Businessmen Group (BMG) Zubair Motiwala and President Karachi Chamber of Commerce & Industry (KCCI) Muhammad Idrees has expressed deep concerns about government’s non-serious attitude to dealing with current economic challenges, heightened political uncertainty, steep devaluation of Pak Rupee, ineffective role State Bank of Pakistan and unregulated profiteering by banks.

They demanded to immediately impose financial and in Pakistan and fix the rate of Pak Rupee to a dollar for at least one month to stabilize the economic situation.

They also demanded that the SBP governor should be appointed as soon as possible to manage the affairs of the Central Bank.

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The representatives of Business and Industrial Community, chambers of commerce and industry, stock exchange, industrial, textile, and exporters’ associations, builders and developers, and other leaders representing large-scale manufacturing, small and medium enterprises, wholesalers, retailers, and other prominent personalities like Muhammad Ali Tabba, Aqeel Karim Dhedhi and Ali Jameel exceeding 50 in number held an SOS meeting on current economic crisis and conducted an extensive brainstorming session to find workable solutions to revive the deteriorating economy and later participated in the press conference.

Mr. Motiwala lamented, “The presence of all these participants in this meeting is evidence in itself the extreme intensity of this situation at hand. Never before, had we found it necessary to conduct a round table conference on any such issue.

The economic situation of the country is deteriorating to such an extent that an industrialist is even asking the basic question of whether he should keep operating his industry or not.”

“The industries will not be able to operate with such high and fluctuating cost of doing business as they are unable to ascertain the selling price and manufacturing cost of their products amid such an intense level of uncertainty,” he added.

It was unanimously decided that govt. should take urgent and out-of-box solutions to withhold the downward slide of the economy of Pakistan and to control and stabilize rupee-dollar parity.

They demanded that the State Bank of Pakistan should intervene to check the fall of the currency. They argued that where the rate of dollar is Rs. 227, the banks are clearing the documents at the rate of Rs. 242 which should be regulated by the Central bank.

Mr. Zubair Motiwala said they were ready to sit with the opposition and government parties to devise solutions to current economic challenges.

He also ruled out the possibility of a Sri Lanka-like situation stating that Pakistan is a land of 220Mn people and an agrarian country with very different dynamics.

They urged the PM and Cabinet to concentrate on bringing back the economy on track. It included bringing down the USD value to Pak Rupee, carefully implementing measures required to secure the IMF loan agreement, and easing the restrictions on imports, particularly raw materials that are absolutely necessary for the survival of economy of Pakistan.

SBP should regulate the banks which are making outstanding/hefty profits on Foreign Exchange transactions and also regulate banks and foreign exchange brokers to stabilize the value Pak Rupee.

President KCCI, Muhammad Idrees argued that the decision to ban the import of raw materials in order to reduce import bills should be reconsidered as it will actually have adverse consequences on the economy as such ban on raw materials, spare parts, and machinery will lead to halting the production processes, resulting in decreased progress, leading to reduced export quantity as well.

They appealed to all the political parties, opposition, and govt. to set aside their political differences, and segregate business and politics. They also demanded to sign a Charter of Economy after developing a consensus among all the stakeholders and political parties of the country.