May 082008

ISLAMABAD: The Pakistani foreign reserves have trembled under political instability and ongoing tensions over survival of reinstatement of judges are also affecting the foreign reserves.

Islamabad Chamber of Commerce and Industry President Ijaz Abbasi said here Wednesday while addressing the executive member committee.

‘Political uncertainty is the only factor pushing the market down and forced investors to offload their shares,’ said Abbasi.

He said the World Bank last month estimated that 33 countries were threatened with political and social unrest because of the skyrocketing costs of food and energy, and Pakistan is among the list.

He said the dollar rose sharply against the Pakistani rupee and the only reason was the lack of political stability in the country. It definitely increases the trade deficit for the investors because we get fewer amounts form our exports and our imports cost us much due to the decrease in the value of rupee.

To prevent a sharp slide of the rupee against US dollar, the authorities should intervene and take the issue seriously; other wise it will deplete foreign reserves and affect the local businessman, Abbasi said.

It is all-time low level for the Pakistani rupee. “It shows how weak our economy is at this time. All over the world the dollar is losing value against major currencies, and our currency is going down against the dollar,” the ICCI president added and demanded the political stability to attract more foreign investment in the country.

He said the government should address prevailing political issues without delaying the time because in June announce of budget is ahead and the businessmen are looking for that to start their businesses and to redress their investments in the country.

He said the government should announce a complete blueprint according to their announcement of hundred day plan to enhance trade and foreign exports.

He said the gas companies had forwarded a summery to OGRA and demanded the increase in the gas prices by 35 per cent.

He demanded the political stability in the country to attract more foreign investment and to boost trade, foreign reverse and exports of the country.

Courtesy: The Post, 8/5/2008

 Posted by at 8:21 am

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