Karachi, 15 Oct 2023: Atif Ikram Sheikh, the presidential candidate for the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), on Sunday expressed satisfaction over the consistent drop in the US dollar's value, highlighting its positive impact on foreign exchange reserves and investor confidence. Despite the positive trajectory, Sheikh indicated that rising demand from importers remains a challenge, necessitating regulatory and economic interventions.
Sheikh, having previously held roles such as Vice President of FPCCI, Chairman of PVMA, and President of ICCI, communicated the inadequacy of administrative measures alone. Emphasizing the need for a balanced economic approach, he recommended increasing exports, remittances, and revenue, while simultaneously curtailing expenses.
Reflecting on past challenges, Sheikh remarked on the severe foreign exchange crisis that severely hampered the nation's economic health, causing apprehension among both local and international investors. This crisis resulted in the stagnation of goods at ports due to a scarcity of foreign exchange. The ripple effect of this stagnation was evident as importers grappled with a backlog of containers and mounting demurrage and detention charges.
Highlighting the economic disparity, Sheikh pointed out the significant gap between the nation's income and import expenditure, stating, "Our total annual income is sixty billion dollars while imports are almost 80 billion dollars." He stressed that this disparity makes borrowing an unavoidable necessity for the nation.
Sheikh expressed the urgent need for self-sufficiency by amplifying income, curtailing imports, and implementing necessary reforms to invigorate public welfare, productivity, and exports. Citing the increasing challenges of a burgeoning population, escalating loans, and a heavy dependency on imports, he remarked on the economic strain when the growth rate surpasses four percent.
Sheikh advocated for pivotal changes in the nation's economic framework, promoting a shift towards renewable energy sources like solar and wind to diminish the import expenses for petroleum products. "Instead of distributing 17 billion dollars to foreign farmers annually, we need to fortify our nation's agriculture to achieve self-sufficiency," Sheikh added.
In conclusion, he emphasized the significance of public welfare, calling for policies that lure investors towards productive sectors, fostering production, exports, and employment. He also underscored the imperative of competitive production costs in the manufacturing sector to bolster exports over domestic market reliance.