ICCI sees no hope of controlling inflation increasing basis points – Mahfooz Elahi

  • November 30, 2010
Government measures for tightening the Monitory Policy has not brought the positive impact as the inflation has gone up more than 20%, Mahfooz  Elahi, President of Islamabad Chamber of Commerce & Industry has said while commenting on the increase in the basis points.

He criticizing on the rate hike by 50 basis points to 14 percent to control the inflation has said that in reality these measures have not produce results, whereas on other hand, economic activity has slowed down a great deal.

Mahfooz Elahi said that government should take growth oriented measure to put Pakistan on fast track of development. He said that to generate economic activity, circulation of money in the market is important and facilitation should be provided for the growth of industrial activities and employment generation.

President said that the Private Sector, which is known as the engine of economic growth, cannot flourish due to increase in markup rate. He said our country badly needs local and foreign investment but high markup rate discourages the investors to go into investments.

He said that cost of doing business has gone up many folds because of gradual and painstaking increase in tariffs of electricity, gas and petroleum products. He added that these initiatives are making our exports uncompetitive in the international market and the prices of general commodities are accelerating and have gone out of the reach of a common man.

Mahfooz Elahi said government should discuss the mechanism of increasing the basis points with the trade bodies across the country to give awareness to the people, that as to how inflation can be controlled by taking such measures.

He said that a large number of people in the country are jobless and the ratio of unemployment is going up due to stagnant industrial activities and increasing in the number of sick industries because increase in the markup rate.

President ICCI said that government should revisit its strategy of increasing markup rates and bring it at par with the neighboring countries.