FPCCI President Atif Ikram Sheikh has welcomed the International Monetary Fund’s $1.21 billion staff-level agreement with Pakistan, terming it a positive development for the country’s economy.
In an important statement following successful talks with the IMF, the President of the Federation of Pakistan Chambers of Commerce and Industry said progress on the IMF programme would help increase global confidence in Pakistan’s economy.
Atif Ikram Sheikh said that after achieving economic stability, Pakistan must now move quickly towards sustainable economic growth. He noted that the increase in foreign exchange reserves and a balanced current account were positive indicators for the economy.
He said the need of the hour was to convert economic stability into exports, investment and industrial growth. He stressed that reforms in the energy sector and the elimination of circular debt were essential for sustainable economic development.
The FPCCI President said timely decisions on electricity and gas tariffs were necessary, but added that the competitiveness of industry and business should also be kept in view. He said direct relief to deserving segments would be more effective than broad-based fuel subsidies.
Atif Ikram Sheikh said the decline in inflation was a positive development and its benefits should be transferred to the people on a sustained basis. He added that, along with stability in the value of the rupee, a competitive business environment was necessary to promote exports.
He called for transparency, merit and the capacity of the private sector to be prioritised in the privatisation process. He also said that the desired increase in private investment would not be possible without reducing trade and regulatory barriers.
The FPCCI President said continuity of economic reforms alone could take Pakistan from external financial support towards sustainable self-reliance. In view of geopolitical tensions and global economic uncertainty, he said it was necessary to increase exports and foreign exchange reserves.
Atif Ikram Sheikh said the government and the private sector would have to work together to turn economic reforms into practical success. He said the IMF programme should not be considered the final objective, but rather a transitional phase towards economic self-reliance.
