KARACHI: President SITE Association of Industry Riazuddin criticised handling of present situation in country where forex crisis has almost halted business activities across all segments of business, notably for industries which pay almost half of national tax revenue.

Presiding over an emergent meeting called at SITE Association of Industry to discuss issues facing industries, notably those who have fallen prey to haphazard actions of government/SBP. Emergent meeting was attended by SVP Abdul Kadir Bilwani, VP Muhammad Hussain Moosani, Chairman of Committee Saud Mahmood, Advisor Anwer Aziz and members of Committee.

Riazuddin said that uncertainty created after issuance of SBP’s EPD Circular Letter No.20 of 2022 on December 27, 2022 issuance of another Circular No.3 on January 13, 2023 further exacerbated already volatile situation of forex availability. “Independence of central bank now needs to be put into action, as provided in SBP Act (amended 2022). Central Bank should come out and lead from front, tackling difficult situation, by taking firm and prudent actions and by issuing clear-cut instructions to authorized dealers for provision of much needed forex.”

In an emergent meeting, SITE Association enumerated firm actions to be taken that allowing rupee fetch its real value on basis of free float, as agreed by government in its Sep-2022 Article-IV consultation agreement with IMF. Quantitative restrictions on imports if and where needed must be clearly specified and an HS code wise list of ‘essential imports’ should be categorically notified, without leaving ambiguity in phraseology of SBP circulars, by using words like such as, “Related to”, “Preferably” or “Etc.”

“Under force majeure, SBP should allow local industries moratorium on repayment of their debt, including interest payments and principal, until such time import restrictions on non-essential industries are lifted by SBP/government,” Riaz said.

Published in The Daily National Courier, January, 19 2023

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