In his statement, Khawaja Jalaluddin Roomi said that this Staff-Level Agreement (SLA) would bring economic stability besides restoring foreign investors’ confidence, stability in the rupee-dollar parity and positive impact on the stock market.Indeed, there is a possibility of acceleration in business activities. Along with this, the government has also got an opportunity to reform and restore the economy on a sustainable basis. We are grateful to the friendly countries of Pakistan for the efforts they have made in relation to this agreement. We are grateful to them on behalf of the entire nation.
Roomi said that the current agreement with the IMF will improve the value of the rupee against the dollar and restore the confidence of domestic and foreign investors. It will lead to increase in economic activities.
On the other hand, following the conditions of the IMF, the mini-budget that has been presented will put a lot of burden on the people.He, however, feared that the IMF bailout programme may increase the cost of production which really scares the entire business community and the government should give special attention to addressing this concern.
“I hope that the US dollar will slide down to its original value, thus helping in controlling food inflation while the interest rate will also be brought down,” observed Jalaluddin Roomi.
After the SLA, he said the money coming from friendly countries and multilateral donor countries would provide fiscal space to the government,he added.
This fiscal space, he added, should be utilised to see that our trade account expands in a way that the country’s exports and balance of payments are taken care of.
“We should concentrate on bringing more home remittances and increasing the exports and making exports viable by bringing the cost of manufacturing and the cost of doing business on par with our regional competitors,” he said.
Khawaja Jalaluddin Roomi further said that now is the proper time for all the political forces of Pakistan, all the national security agencies and all the business organizations to shed their differences and come together in one table to sign a charter of economy for restoration of the economy on solid grounds for the period of at least ten years. They all should think like a patriotic Pakistani . No matter whose the government is, the restoration program of the economy should not be affected. In this way, the various financial crises going on in the country will be able to be resolved. He said that the time has come for the government institutions to control their expenses so that the government should send a message of auterity to the people.
Khawaja Jalaluddin Roomi said the SLA for standby facility to bridge liquidity gaps is welcomed and its phased release should keep the government on a responsible path within the tramlines stipulated by the IMF.
Renowned Industrialist said the industry will also have to carry the brunt of higher energy tariffs as if higher rates were a sustainable solution to distribution losses, theft and under recovery which are the real reasons for circular debt. There is nothing substantial demanded by the IMF on stemming leakages due to state-owned enterprise losses. Another surprising expectation is that imports can be eased. He said the country needs various steps like austerity measures, an incentive package for overseas Pakistanis to secure their investment to bring in more foreign direct investment, encourage industrialisation for job creation, control imports, boost exports and long-term planning for the country.He further said for sure industry in the formal sector will carry the brunt of the higher policy rate, even if knowing that policy rate is not the right solution to curbing cost-push inflation
