Islamabad, In a significant development indicating the country's gradual progress toward political stability, former President of the Islamabad Chamber of Commerce and Industry (ICCI), Dr. Shahid Rasheed Butt, highlighted the stable condition of the rupee, a rise in exports, and a decline in inflation rates. Dr. Butt urged the upcoming government to promptly secure a five-year agreement with the International Monetary Fund (IMF) to bolster the economic landscape.
According to Islamabad Chamber of Commerce and Industry, Dr. Butt elaborated on the improving general situation, which has sparked optimism among the populace and the business sector. He emphasized the necessity for the new administration to not only pass the IMF's review but to also establish a five-year contract with the institution to ensure the achievement of desired economic goals. He argued that shorter programs with the IMF have been insufficient and that a more extended agreement is crucial to halt the depletion of the country's resources.
Dr. Butt outlined several preconditions for the IMF program, including the downsizing of the government, the privatization of unprofitable state-owned enterprises, comprehensive reform of the electricity and gas sectors, expansion of the tax base, and the implementation of other critical reforms. He also suggested that the new IMF program should impose appropriate taxes on sectors such as wholesale, retail, property, agricultural income, and transport.
Official data cited by Dr. Butt revealed a decrease in the inflation rate to 23.1 percent in February, down from 28.3 percent in January, and significantly lower than the 38 percent recorded in May. However, he cautioned against reducing interest rates in response to the declining inflation, noting that such a move might conflict with IMF expectations.
Dr. Butt acknowledged the slight increase in exports and the rupee's stability over the past months as positive signs. Yet, he warned against the currency mafia's rumors that threaten to destabilize the rupee's value against the dollar, calling for strict legal action against such malpractices. He also expressed concern over the misuse of social media, which he views as a significant challenge to societal and economic well-being, advocating for a lasting resolution to this issue.
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