Current economic situation in country is not very encouraging trade and industry are facing acute problems due to economic meltdown. Devaluation of rupee has badly affected economy. As you know in previous regime for just a one billion dollar loan we had surrendered ourselves and accepted many undue conditionalities of IMF. Rate of inflation could be measured by fact that at present average cost of electricity has gone up to fifty rupees per unit. Gross inflation has roughly reached 18 to 20 percent.

SMEs' cost of production has doubled in this era. Their profit margin has been reduced to half. This situation is leading towards closure of large number of business units. Textile industry is facing closure due to reverse of electricity tariff, this policy needs to revisit otherwise we have to face a decline in exports and it will lead to closure of textile industrial unit."

"I have been requesting for last five-six years to all political parties to kindly finalise charter of democracy among you by setting some parameters to save economy of country. Political parties and leading business platform like FPCCI should decide to have a ten to fifteen years long plan for a stable roadmap and come out of this uncertain situation. They should draw a long-term sustainable economic policy for which FPCCI's platform is always there to welcome them for national cause. But we must remember that political stability in country is the basic requirement for peaceful economic development and attracting foreign investors."    

Sheikh Muhammad Ali, a young talented businessman stated during his interview with Daily National Courier. He is former Vice Chairman of FPCCI, a member of Executive Committee of Young Entrepreneurs Group Asia Pacific, Confederation of Asia Pacific Chamber of Commerce and Industry and member of FPCCI Standing Committee on Furniture. He is an MBA from Lahore School of Economics.

In reply to questions, he said that it was unfortunate that during past five-six months with change of regime dollar's rate become unstable only due to political instability. IMF delayed its final agreement which created uncertainty and other friendly countries too imposed certain restrictions for re-negotiation of their loans. This situation created many problems for business community and general people of country. Cost of goods was increased, steps taken by government to avoid devaluation of rupee back-fired. Under section 8485 import of machinery and its parts was banned. Already opened L/Cs and import shipments reached ports were also stopped that creating serious crisis for business community. State Bank raised hurdles in allowing release of foreign exchange to those importers which were burdened with heavy demurrages that incurred huge losses. At one stage even more than 100,000 dollar L/Cs were not opened without approval of SBP. Even twenty to twenty-five thousand dollars documents were required prior to approval of SBP. In addition to regular opportunists, situation become more horrible and it was the first time in history of country that private commercial banks were also involved in spread of dollars and earned pitiless windfalls. They exploited nation heavily.   

In these hard circumstances, another crisis was created by floods as 32 million people are affected by flood including large number of businessmen. All big markets in interior Sindh, Punjab and KPK were destroyed by this flood. Tourism business in KP has been wiped out completely. Being a human we must help our countrymen, in this regard, FPCCI has already announced a fund of Rs 150 million contributed by all member associations and chambers.

Published in The Daily National Courier, October, 07 2022

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