The Employer’s Federation of Pakistan (EFP), while appreciating the Government of Pakistan’s decision to ban imports of various items and non- essential luxury goods under the ‘Emergency economic plan’, said that the banned items include mobile phones, automobiles, headphones and speakers, etc. This measure, although may be against public interests, is crucial for Pakistan to prosper.
The country’s economic situation has reached an alarming level where our forex reserves are depleting at an accelerated rate and our imports are ever increasing. The country has been stuck in a debt spiral where interest payments would lead to a huge outflow in our forex reserves, because of which the country would need to take on more debt. The government’s decision to ban imports on various items will help ease pressure on our forex reserves and thus lead to an improvement in Pakistan’s Balance of Payments position.
The president of the Employer’s Federation of Pakistan (EFP), Ismail Suttar, believes that this is a welcome decision by the government to curb non-essential imports. “This decision by the Government of Pakistan to ban imports is for the betterment of our country’s economic situation and deteriorating BOP position. EFP would like to thank the Government of Pakistan for listening to EFP’s advice on taking strict and sometimes unpopular measures for the greater good of the nation” he said.
Ismail Suttar added that the EFP believes that this import ban should extend to all non-essential/ luxury imports. With the US Dollar crossing the PKR 200 mark, imports have become as expensive as ever. As a result, a ban on all non-essential/luxury goods will help accelerate a recovery of Pakistan’s BOP position. This decision would also help increase employment within the country and increase demand for local goods.
“The government needs to take several more unpopular decisions to save the country from economic turmoil. For example, the government needs to introduce strict measures to control the import of fuel/energy related products. Pakistan’s energy imports have been on the rise and have a major impact on our foreign reserves as the country is heavily dependent on imported energy. Thus, measures to curb energy/fuel imports will greatly help in Pakistan’s BOP recovery”, he said.
Instead of paying for imports of non-essential/luxury goods through servicing more debt, the government’s ban on imports will help to provide much needed relief to our foreign reserves. Ismail Suttar further stated, “The government’s decision to implement these measures is the need of the hour, however more measures are needed to pull us out of this economic crisis. With proper measures and policies, Pakistan is a country that has the potential to showcase itself as a progressive economic power in the South Asian region”.The Government needs to act quickly as without proper implementation of strict measures, the efforts for economic revival will go in vain.
