KARACHI, Jun 20 (NNI): Pakistan Business Forum (PBF) says on Tuesday that the IMF program does not seem to be completed, as Pakistan is not on the agenda even in the June 29 meeting of the executive board.
Chief Organiser PBF, Ahmad Jawad blames geopolitics for stalled IMF program. Now risks are increasing that Pakistan may be unable to complete the IMF programme which will be completed on June 30th this year.
Our geographical situation is the best in the world with China, Iran, and India as our neighbours. We could become the richest country in the world by taking advantage of our geographical importance. But we did not do.
Jawad said that if financing support does not arrive fast or any other alternative option, the situation would have lingered too close to the edge for too long for a country of 250 million people.
PBF Vice President Jahanara Wattoo said global powers have pitted Pakistanis against each other and want to take advantage of the internal rift in the country.
Whereas Wattoo believes that’s it’s time to opt for option ‘B’ for the revival of the economy. As IMF were not the solution any economy.
In this regard, PBF demanded Government may immediately open imports to support GDP. To increase exports, the tax exemption given to five zero-rated sectors previously, should be restored immediately. Privileges should be given for sending remittances to overseas Pakistanis living in United States, UK and Europe.
Overseas Pakistanis who send more remittances may be given the official title of ‘Ambassador of Pakistan’.
Further, the rupee is currently undervalued, bringing the dollar to 240 to give the economy some breathing room and also helps in to reduce inflation.
Moreover, PBF ask for targeted subsidies to the five export-oriented sectors i.e. textiles, IT, leather, sport and surgical goods in electricity and gas tariffs making it competitive through regionally competitive energy tariff mechanism to manage exports earnings due to dearth of dollars.
They mention that the government should also encourage remittances by bridging the exchange rate gap between banking channels and open markets and protecting the assets of overseas Pakistanis.
They also include steps to incentivise industrialisation, export substitution and revival of sick units and make all economic policies in consultation with real stakeholders and provide due subsidy to agriculture sector to ensure food security in the country.
Regarding oil facility, PBF Jahanara Wattoo also said in my opinion, right now, more than discount we need to get cargo on credit.
Pakistan traditionally buys the bulk of its energy from Gulf countries with Saudi Arabia and the United Arab Emirates its top suppliers. While the Saudis have often supplied fuel on credit, Pakistan’s budget for the next fiscal year starting in July does not include any such facility from its Middle Eastern ally which needs to be reviewed; she added.
Similarly PBF VP Jawad said the cost of getting cargo all the way from Russia via Oman, instead of from Gulf countries located nearby could also chip away at the possible benefit to Pakistan.
“Russian cargoes are not as cheap as they used to be, let’s say, 10 months ago when India started buying from Russia…There was a different pricing level at the time. Since then, more international traders started buying and prices went up. It’s not possible to now say that ‘I can get Russian cargo very cheaply,'” he said. NNI
