KARACHI, MAR 28 /DNA/ – Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), has welcomed the newly reached Staff-Level Agreement (SLA) between the Government of Pakistan and the International Monetary Fund (IMF) for the disbursement of approximately $1.2 billion.
Mr. Atif Ikram Sheikh elaborated that the agreement, which follows the successful conclusion of the third review of the Extended Fund Facility (EFF) and the second review of the Resilience and Sustainability Facility (RSF), is a vital step toward sustaining macroeconomic stability.
Mr. Atif Ikram Sheikh, President of FPCCI, commended the development, noting that the unlocking of $1 billion under the EFF and $210 million under the RSF will provide much-needed breathing room for the economy.
FPCCI Chief explained that this agreement will bolster our foreign exchange reserves; rebuild market confidence and send a positive signal to international rating agencies and bilateral partners. However, stabilization alone is not the finish line. The government must urgently pivot its focus toward fostering robust, inclusive industrial growth by addressing the structural bottlenecks that continue to stifle the private sector, he added.
Mr. Atif Ikram Sheikh highlighted that, while the apex trade body expresses relief over the successful continuation of the IMF program, FPCCI leadership demands incentivization of the business, industry and trade community as it is currently operating under immense pressure due to high operational costs and geopolitical uncertainties.
FPCCI President maintained that, to capitalize on the economic buffer provided by the IMF agreement, FPCCI urges the government to immediately prioritize reforms aimed at facilitating trade and industry – and, as the first step, a significant reduction in the policy rate, which is meaningful and immediate, can help boost the investor and business confidence.
Mr. Atif Ikram Sheikh reiterated that, instead of further squeezing the regular taxpayers, broadening the tax base should be the key policy consideration – and, revenue mobilization efforts must focus on bringing untaxed sectors into the net rather than burdening the already compliant and law-abiding business community.
Mr. Atif Ikram Sheikh pointed out that policies such as the further tax and delayed sales tax refunds drain industry out of the much needed liquidity and must be addressed. Echoing the structural benchmarks highlighted by the IMF, FPCCI calls for robust institutional reforms to
curb corruption; improve the rule of law and ensure transparency in public financial management.
Mr. Saquib Fayyaz Magoon, Senior Vice President (SVP) of FPCCI, expressed concerns on the external threats facing the economy – noting that escalating military tensions in the Middle East and surging global freight costs are severely endangering Pakistan’s trade outlook. In the face of these global supply chain disruptions and fuel price volatility, domestic economic policies must act as a shock absorber – not an additional burden on our exporters, he added.
FPCCI reaffirms its commitment to serving as a constructive partner to the government. The apex body stands ready to assist in drafting evidence-based policies that promote an enabling environment for sustainable industrial expansion; export growth and business climate resilience.
