ICCI urges Government to tackle macroeconomic instability

  • March 21, 2012
All major economic indicators of the economy are declining which is not reflecting a healthy state of economic affairs.

There is an urgent need that Government should revisit policies to avert downward spiral of macroeconomic instability. Economic managers and private sector need to have a joint sitting in order to identify the solutions of the problems being faced by the country, Yassar Sakhi Butt, President Islamabad Chamber of Commerce and Industry made these remarks during a meeting with business leaders at Islamabad Chamber.

ICCI President was of the view that the growth rate, inflation, debts and liabilities, budget deficit were putting negative impact on all the sectors of economy which have never been so in the past 65 years. He said that immediate attention by the economic team was direly needed to immediately tackle the downslide and get things back on the right track.

He said that that the average annual growth rate for the last three fiscal years from 2008 to 2011 was around 2.6 percent, which was the worst in the country’s economic history and lowest in the region as well.

Commenting on the fragile economic situation, Yassar Sakhi Butt said that fiscal deficit which was currently stood at 6.3 percent of GDP has increased due to delays in policy measures to enhance the revenue collection and also heavy fiscal support to the state-owned enterprises.

ICCI President said that coming budget should also ensure to maintain macroeconomic stability that would help accelerate economic growth in the long-run.

He stressed upon the Government to adopt the policies of good governance and thought out about implementation of polices within specific timeline rather than making false promises with the nation.