The Overseas Investment Chamber of Commerce and Industry (OICCI) and the management of the State Bank of Pakistan (SBP) met to discuss urgent fiscal and monetary policy actions that must be taken to aid in stabilizing Pakistan’s economy.
Dr. Murtaza Syed, the acting governor of the State Bank of Pakistan (SBP), Dr. Inayat Hussain, and Sima Kamil, the deputy governor of the SBP, all attended the meeting.
Ghias Khan, OICCI’s president, and Abdul Aleem, its secretary general, guided the discussion and brought up member concerns about the pre-approval process for letters of credit (LCs) for the import of machinery and spare parts, on-time remittance payments, approval exemptions of shipping values being too low, and other operational issues. The SBP leadership was urged to impose deadlines in order to protect the supply chain of the sector.
The SBP team provided a thorough review of the present economic environment and the intended approach to problem-solving in 2023. In Pakistan, 95 percent of the GDP is driven by consumer spending, making it primarily a consumer-driven economy. The SBP team asked the OICCI members to increase exports in order to assist balance exchange rate fluctuations and currency depreciation since they were certain that Pakistan’s issues will pass quickly.
“This conference was a much-needed first step for the rebuilding of Pakistan’s economy,” Ghias Khan said. We must immediately put effective measures in place to stop our cycle of circular debt. I am certain that under Dr. Murtaza Syed’s leadership, the SBP will be able to weather the present economic environment while forging a path for development. The SBP has always played a crucial role in stabilizing Pakistan’s economy.
“SBP is taking severe steps and making painful choices to help prevent the economic disaster,” said Dr. Murtaza Syed. One of the primary factors contributing to Pakistan’s current predicament is the combination of global inflationary pressures and a pro-cyclical expansionary fiscal policy during a pro-cyclical time. The burden on the economy will lessen after these steps are taken and the IMF loan is obtained, particularly with reference to the weakening Rupee.
OICCI plays a significant role in the development of trade and industry in the nation by acting as a forum for promoting foreign investments. OICCI invested $2.4 billion in total last year, which accounted for one-third of all taxes paid in the nation.