POLITICAL TURMOIL IS IMPEDING ECONOMIC PROGRESS – ICCI PRESIDENT

Political and economic stability, pro-growth policies, better law and order are pre-requisites both for restoring the confidence of foreign and local investors, sustainable national economy and survival of the country, stated Muhammad Ijaz Abbasi, President, Islamabad Chamber of Commerce and Industry while addressing a meeting of business community at ICCI called to discuss current scenario in the country with special reference to its effects on business and economy. He said business community supports a strong democratic system in the country, which is essential for promotion and growth of economic activities while the current political turmoil is not good for the country as our economy cannot afford a prolonged uncertain situation. He said people had given their vote in February 18, 2008 elections to establish a truly democratic government in the country where parliament should be supreme in all important national decisions and where all institutions should play their role according to constitutional requirements and people mandate should be given top priority for paying attention to their problems. 

ICCI President said due to this uncertain political scenario, $180 million have been pulled out by the foreign investors from stock exchange foreign portfolio investment while our budget and trade deficits are on the rise against a volatile setting. He said the economic situation has gone downhill as annual inflation, at more than 24 per cent, is at its highest in more than three decades, the current account gap has widened, while stock market is down 2 per cent this year while our currency has depreciated by over 20 percent against US dollar since the beginning of this year thus adding cost to our imports. He called upon the government to intervene to control inter-bank rate to arrest the downward slide of the currency.

ICCI President said that continuity of the balanced and durable prudent economic policies would definitely shore up the confidence of foreign as well as local investors in all sectors, but the prevailing scenario in the country is not impressive for trade and industry as our economy is experiencing a slow down in its activities. He said survival of our country rest with the sound economy and now it is high time for all stakeholders to demonstrate highest degree of tolerance and responsibility towards political stability in the country which is key factor for sustainable economic growth.
Muhammad Ijaz Abbasi underlined the vital importance for immediate peaceful settlement of all national issues in the larger national interest for prompt return to political stability as most of the foreign and local investors including domestic traders are facing tough time in the wake of uncertain situation in the country. He said that entire nation has pinned high hopes on government for delivering to people and government should accord top priority to resolution of people problems.

ICCI President said Pakistan badly needs domestic and foreign direct investment to cope with the challenges of poverty, unemployment and inflation while the current unstable scenario is discouraging prospective investors from coming to Pakistan as investors are always prefer safe destinations to invest their capital.

In the end, Muhammad Ijaz Abbasi said that with the far-sighted vision and prudent policies, Pakistan has the potential to become a major regional hub for industry, trade and services and stressed upon the government to tackle all issues on priority and strive for sound policies to turn the country into a stable economy.