Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Wednesday said loan from IMF has not eased pressure on the rupee.Â
The rupee continues to fall, which is affecting the entire population and economy, he said.
Mian Zahid Hussain said that steps should be taken to strengthen the rupee, otherwise it would erode the confidence of the people.
Talking to the business community, the veteran business leader said that the resumption of international flights was impacting remittances while the real estate market was also slowing down due to inflation and other factors which is stoking unemployment.
Oil prices are rising due to the Russia-Ukraine conflict, which is influencing all oil importing countries, including Pakistan, as oil prices at home have reached the highest level in the history of the country, he said.
The price of petrol has been increased by Rs12 while the price of diesel has been increased by Rs9.50 which will increase the price of everything and slow down the economy.
The prices of commodities in the international market are also unsatisfactory and the situation of important crops in the country is also worrying which is aggravating the problem of food security while the problem of the textile sector is also increasing, he said.
The rupee appreciated somewhat with the resumption of the IMF loan, but only for a few days, after which its downward spiral resumed, he noted.
Mian Zahid Hussain further said that the central bank has been slashing interest rates on housing loans aimed at reviving the construction, but the IMF is pushing for the removal of special incentives for this sector.
He added that the government could not do anything about the Russia-Ukraine conflict and oil and commodity prices in the international market, but it can promote agriculture, improve governance and reduce non-essential imports which would support rupee and foreign exchange reserves.
The decline in remittances to Pakistan has started causing concerns as the hindi and hawala business is reactivating and in the current scenario there is no prospect of a reduction in inflation for the next two to three months.
Mian Zahid Hussain said news of the no-confidence motion has added to the political and economic uncertainty in the country.
