Lahore, APR 8 /DNA/ – FPCCI Businessmen Panel, Chairman (Capital) and Federation Chambers former Vice President, Riaz Khattak lauded the historic judgment of the Supreme Court of Pakistan on the ruling of the deputy speaker of the National Assembly and were unanimous in their view that the top court had upheld the rule of law and supremacy of the Constitution.
He said this decision would give confidence to the investors and economic wheel of this country would revive accordingly.
Commenting on policy rate, the BMP official rejected the State Bank of Pakistan’s policy rate hike by 250 basis points to 12.25 per cent, stressing the cost of doing business, which is already up due to the volatile exchange rate, will further come under pressure.
Riaz Khattak further viewed SBP should have waited till the final verdict of the Supreme Court which might have settled down the political dust and revived economic activities gradually,” I fail to understand how the policy rate will curb food inflation as the high-interest rate and rupee depreciation will increase the cost of doing business,”
President, Pakistan Businesses Forum (PBF) Mian Usman Zulfiqar said in the past we have seen that in such decisions the doctrine of necessity prevailed but it has happened for the first time that the judges completely stood by the Constitution and gave a historic judgment.” Talking about the future, he said the judgment had made it clear that in future any government functionary would be cautious while taking any unconstitutional step and decision. He said the verdict had set a precedent that the Constitution is supreme and no one is above the law.
However PBF President disappointedly says Governor SBP has assumed role of silent spectator on steep fall of rupee against dollar
Now it’s proved that free float exchange rate idea is not working. The State Bank of Pakistan (SBP) should play its role and devise effective strategy to stop further devaluation of rupee which is having a lethal impact on the economy and the inflation reading.
The value of dollar in interbank market has touched Rs187. Is SBP a partner in crime and deliberately closing its eyes to massive manipulation going on right now? SBP must clarify it’s position.
“It has to be understood that the share of exports in GDP stands at around 10% while the rest 90% is local trade and imports,” he said. “Therefore, the devaluation is hurting and it has reached an unbearable level now.”
If the economy does not return to the radars of those who are at the helm of affairs then a full-fledged crisis will strike around July-August period of next fiscal year.
Usman Zulfiqar also urged the Chinese Government to bail out Pakistan and provide soft loans so that we may get out of it from the rupee pressure permanently.
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