Prevailing political uncertainty termed harmful for business

KARACHI: Shaukat Ahmed, acting president, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said on Monday that the present political uncertainty and sit-ins in the country were severely impeding commercial activities and solutions to the economic issues including, control over inflation and poverty, continuity in infrastructure development work and growth of industrial production, building foreign exchange reserve, welfare work and in placement of Internally Displaced People (IDPs).

“Energy crises have become more severe by long interruption in the supply of gas to the industry. These economic damages due to sit-ins are long-term. Exports from factories located in the other parts of the country have failed to reach port for onward destination. Foreign importers have stopped their orders and are looking for alternatives,” he said in a statement.

He said that political instability had adversely affected economic performance through multiple channels. “When the political situation becomes unstable, investors adopt a wait-and-see attitude.” He mentioned that political tussle would damage the business confidence and investment activities in the country. “Political instability and frequent changes in political regimes extract an enormous price from the economy.”

Ahmed said that under current uncertain environment, law and order situation had worsened which was also increasing feeling of insecurity among businessmen. There is great threat to life for the businessmen. Investment opportunities have also declined in the country and investors are not interested to invest in Pakistan.

He indicated that in this situation, the benefits of Prime Minister Nawaz Sharif’s efforts for economic revival would not be materialized and all political and diplomatic efforts would become useless. He appealed to the political leaders and statesmen to keep isolated the economic decisions from politics in the best interests of Pakistan.

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