ISLAMABAD
Former President of Islamabad Chamber of Commerce and Industry (ICCI) Dr. Shahid Rasheed Butt on Friday said political instability is damaging the fragile economy and hampering growth.
Apart from protests by an opposition party, people are taking to the streets on different issues including inefficient services and law and order problems, he said.
Shahid Rasheed Butt said that politicians are hampering development for ulterior motives, economic conditions are in a shamble and inflation is touching the sky which has cornered the masses.
The government has requested IMF to increase the amount of loan and relax conditions while it is also trying to borrow from World Bank and Asian Development Bank as forex reserves have fell to a record level creating panic in some business circles, he added.
IMF has not accepted requests so far while the disbursement by WB and ADB is not realized any time soon which is putting pressure on the economy.
Some economists think that infusion of funds may not result in solutions to the problems as the economy is in very bad shape.
Shahid Rasheed Butt said that developments on the political front have raised concerns about the stability of the economy as the political stage is set for confrontation.
The biggest worries center around Pakistan’s ability to pay for imports such as energy and food and to meet sovereign debt obligations.
Before the floods hit, external financing needs for 2022-23 were estimated at $33.5 billion, according to the State Bank.
Now, the floods have changed projections. Exports are expected to slump and imports to grow to make up for essential commodities lost in the flooding of millions of hectares of farmland.
