The recent appreciation of the rupee against the dollar, which fell from Rs 343 to Rs 270, was another milestone Shad attributs to Army Chief General Asim Munir
By M Qadeer
LAHORE: Chamber of Commerce and Industry (LCCI) President Abuzar Shad credited Army Chief General Asim Munir for the recent historic surge in the KSE-100 Index, which crossed 100,540 points. Shad said the achievement was made possible due to General Munir’s crackdown on smugglers and efforts to get rid of currency smuggling when the index was at 46,000 points. These actions not only stabilized the rupee but also boosted investor confidence, leading to significant growth in the stock market.
Talking to The Tribune International, Shad highlights the damaging effects of political agitations on the economy, stating that such disruptions cost the nation billions of rupees. “Every hour of unrest results in an Rs8 billion loss to the economy,” he stressed. He urged politicians to resolve their issues within assemblies instead of taking to the streets, as these protests only exacerbate the struggles of a nation where 32 per cent of the population depends on begging and 100 million people live below the poverty line. He said unemployment is at an alarming level, with only 32 per cent of the population earning a livelihood.
Addressing economic reforms, Shad called for a reduction in the markup rate to 11 per cent, the abolition of high-denomination currency notes like Rs5,000 and Rs1,000, and the introduction of long-term policies. He pointed out that Pakistan has the potential to collect Rs25,000 billion in tax revenue, but due to inefficiencies, the current collection remains at Rs 13,000 billion. Shad also criticized the country’s planning mechanisms, comparing them unfavorably to India’s Planning Commission, which has been functioning effectively for decades under experts like Montek Singh Ahluwalia.
Shad highlighted the critical role of the business community in driving economic recovery, likening businessmen to “golden sparrows.” However, he lamented the hostile environment they face, citing the flight of 4,000 companies and $8,000 in capital to Dubai this year alone. Departments like Customs, environmental inspectors, and tax authorities, he said, are making business operations increasingly challenging under the pretext of inspections.
Exports, he argued, are fundamental for economic revival and must be prioritized. He also highlighted the need to support the cottage industry and simplify tax policies to encourage compliance. Shad suggested involving chamber presidents in financial decision-making, citing example of judges and doctors who are selected from the legal profession but economic policies are left to bureaucrats.
The recent appreciation of the rupee against the dollar, which fell from Rs 343 to Rs 270, was another milestone Shad attributed to Army Chief General Asim Munir. He expressed gratitude for the Army Chief’s engagement with the business community over the past 20 months, noting that the absence of government interference during this period has been a significant factor in stabilizing the currency.
In conclusion, Shad called for long-term planning, export enhancement, reduced taxes, and a supportive environment for small and medium enterprises. The LCCI chief reiterated that economic stability can only be achieved if all institutions work in harmony with the business community, urging political leaders to prioritize stability and avoid disruptive protests.
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