SBP urged to give clear import policy

Lahore: State Bank of Pakistan should give a clear policy for imports as at this time it seems that the imports have been stopped completely.

Strengthening of local manufacturing sector is very crucial for the economy.

These views were expressed by the LCCI Senior Vice President Zafar Mahmood Chaudhry, Convener LCCI Standing Committee for Auto Accessories, Plastic and Rubber Autoparts Waqar Ali, Co-Conveners Muhammad Ejaz Mushtaq and Syed Ahmad Bukhari while addressing the meeting of Standing Committee. Other members of the Standing Committee were also present.

The participants of the meeting said that it is necessary to take special measures for the development of this sector. They said that automechanic fair is held in Shanghai every year in November. People associated with this sector want Lahore Chamber to support them to participate in this fair.

LCCI Senior Vice President of Zafar Mahmood Chaudhary said that in the fiscal year 2021-22, Pakistan's total imports were more than $ 80 billion while exports were $ 32.4 billion dollars. In the financial year 2022-23, imports decreased to $ 55.9 billion and exports to $ 27 billion dollars. He said that our imports have been reduced by 31% since 2021. He said that we have paid $ 7 billion to foreign shipping companies for import only during the last year because Pakistan does not have any shipping company of its own.

He said that 7% de-industrialization and 4% decrease in small scale industry have been recorded. Combined with our exports and remittances, we are a country with an income of 55 billion dollars and we have to run our country's system with this money.

Zafar Mahmood Chaudhry said that the current situation is that the markup of our Foreign Direct Investment is also going abroad. We are paying about $700 per person to the foreign airlines for private travel alone, while PIA's total transaction is only 6% of foreign travel.

He said that our focus should be on exports. The most negative role in this situation is of the banks who stop people's LCs and contracts without any clear policy of the State Bank.

 He said, “At present we have 4.37 billion dollars in foreign exchange reserves and commercial banks have about 5.23 billion dollars which together make about 9 billion dollars,”.  

“We have to pay only interest of 7338 billion rupees in the current financial year. We are paying about 100 billion rupees in subsidies. Harmful institutions such as PIA, steel mills, discos are giving this money to around 20 institutions,” he added.

He stated that Lahore Chamber will support the traders in every way and will be their voice in every way.