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Political instability costing heavily to the economy: LCCI

Lahore, December 08, 2017 (PPI-OT):Pakistani economy is paying heavy cost of the political instability and chaos-like situation. Country has already beard gigantic loss of $ 120 billion due to war against terrorism during the last two decades and is not in a position to bleed more to the political adventures.

In a statement, the LCCI President Malik Tahir Javaid, Senior Vice President Khawaja Khawar Rashid and Vice President Zeeshan Khalil said that prolonged political instability and protests etc. have aggressively harmed economic growth of the country. They said that political stability is the major tool for economic development and sustainable economic growth is not possible without political stability in the country.

“Political instability is overlapping the major issues like rupee devaluation, miserable balance of trade, nose-diving stock market, unimpressive annual GDP growth rate of 5.28%, industrial growth rate of just 2.47%, unemployment rate of 5.9%, current account deficit, huge debt-to-GDP ratio and discouraging ranking of 147 in ease of doing business that should be a matter of concern for all”, they added.

The LCCI President Malik Tahir Javaid said that a week of stalled economic activity costs the country $500 million or $2 billion per month and a weak economy like Pakistan cannot afford to lose even one million dollar loss to exports. The LCCI President said that such activities would not only tarnish the image of the country in the eyes of international community but would also hinder economic growth.

He said that the leadership of all political parties should join hands for strengthening the economy. He said that the political leaders should settle issues in Parliament, which is a democratic, and the just forum for this purpose instead of disturbing the business activities and public life through holding sit-ins and rallies.

Malik Tahir Javaid said that political systems with vision for future play major role in economic stability of a country. He said that all political parties should have a wing that should comprise social, economic and financial experts. The LCCI President also called for controlling rising trend in dollar price and feared that surge would result in stagnant growth as it would hit all the important sectors of economy therefore precautionary measures should be taken on war footing to control this trend.

He said that recent surge in the prices of the greenback would not only jack-up the cost of doing business but would also erode the profit margins. He said that the State Bank of Pakistan needs to ascertain the factors weakening the value of rupee and check the possibilities of undue speculations and malpractices in the operation of foreign exchange markets in Pakistan.

For more information, contact:
Information Department
Lahore Chamber of Commerce and Industry (LCCI)
Lahore -54000, Pakistan
Tel: +92-42-111-222-499
Fax: +92-42-36368854
Website: www.lcci.org.pk

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