ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has claimed that the bureaucracy was not following the directives of Prime Minister Imran Khan regarding facilitation of businesses across the country.
Talking to a group of journalists on Tuesday, FPCCI Vice President Qaiser Khan Daudzai said PM Imran Khan was requested in a recent meeting to intervene in the economic policies, as the existing interest rate was destroying the industry.
“Unfortunately, it seems that the government is helpless after signing the loan agreement with International Monetary Fund (IMF), as decisions are ultimately taken on the directions of the international lender,” Daudzai deplored. “Everyone at the helm of affairs gives the excuse of ‘IMF condition’ whenever the unjustified interest rate (13.5pc) is questioned.”
He said until the exchange rate was back below 10pc, economic activities would remain stagnant.
“However, the most serious thing we observed [during the meeting] was that the bureaucracy was not even listening to the PM’s directives,” the newly-elected official said, referring to the recent meeting of the FPCCI delegation with the premier.
He said several issues were highlighted to the PM and his economic managers, including reduction of interest rates, uniform energy prices and FBR’s responsibilities.
“But nothing has happened so far despite assurances by the premier.”
According to the FPCCI official, economic revival was being delayed in the country owing to undue “harassment” by various federal and provincial departments.
“We support the government’s decision to document the economy, but putting most of the tax burden [from the entire distribution chain] on industrialists and manufacturers is highly unrealistic and unfair,” he stated. “People think that the tax collecting body is the only trouble maker but even the provincial environment departments and health departments pressurise the industrial units.”
Daudzai demanded a clear government policy regarding environment, labour, health etc. which should be available at the industries departments of all provinces, adding that most departments raid industrial units by taking advantage of the fact that no one knows their policies.Â
To a query, he said several small and medium size industrial units have closed their operations or reduced their output.
“The reduction in industrial production will eventually lead to higher imports and smuggling, which will enhance grey economy in the country, as neither all the imports nor the retail sector is documented.”
Daudzai also criticized the government for not implementing the agreed economic revival plan for federally administered tribal areas (FATA) and provincially administered tribal areas (PATA).
