Political instability to further fuel financial uncertainty: APBF

The All Pakistan Business Forum (APBF) on Sunday stressed the need for undertaking economic reforms and improving the regulatory environment so that financial stability can be achieved in the long-run.

The APBF President Syed Maaz Mahmood, in a statement issued here on Saturday, stressed the need for reducing cost of doing business, besides evolving a new price control mechanism, as huge taxation, rising oil prices and constant jump in electricity and gas tariffs have lifted the cost of production to a new high. He warned that bailout packages from the IMF were unlikely to speed up economic growth, as the political instability and lack of reforms would further deteriorate the financial situation in the country.

The APBF President observed that amidst continuous of hike in cost of production in the country, what the Pakistan’s economy really needs is persistent and sound economic management.

APBF Chairman Ibrahim Qureshi warned the authorities that high inflation can hurt economic growth and a careful policy is required to keep it in control. He said that the pace of inflation is skyrocketing at a time when the economic activity is slowing down.

Ibrahim Qureshi said that the anti-business policies would prove detrimental to the industries due to high cost of doing business and will also open the floodgates of inflation. In addition to making the electricity bills costlier and unaffordable for the consumers, the hike in base tariff would escalate prices of all household goods being widely used in every household, he added.

Syed Maaz Mahmood termed the constant increase in tariffs unlawful and a violation of NEPRA’s own rules and regulations, as any increase in tariff has to be determined and implemented only after holding public hearings but unfortunately they have solely decided to raise the tariff without holding public hearings, he argued. He condemned the National Electric Power Regulatory Authority’s decision to increase electricity tariffs on daily basis, stating that the burden of power theft, mismanagement, and inefficiencies cannot be shifted to consumers on the pretext of fuel adjustment.

The APBF President said that Pakistan’s industry had been harmed by the high cost of doing business, which discouraged investment in capacity and capability and called for easing the burden of heavy taxes on the power sector.

Syed Maaz stated that the constant increase in power tariffs on the pretext of fuel adjustment had increased electricity prices and added to the already high cost of trade and industry. Seeking comparable energy tariffs for domestic industries in order to capture the global market, he stated that due to high electricity rates, power theft became rampant as the tariff was unaffordable to consumers.