Cracks appearing in the economy: FPCCI

Rising political temperature to damage the economy

The Federation of Pakistan Chamber of Commerce and Industry (FPCCI) on Saturday said after two years of consolidation and growth cracks have started appearing in the economy which is not good for the country.

The rising political uncertainty is not good for the economy as it will further deteriorate the economic situation with a fast pace, said Atif Ikram Sheikh, Chairman FPCCI Regional Committee on Industries.

He said that some cracks are appearing on the economic horizon against the claims of an economy made resilient after years of efforts.

Atif Ikram Sheikh said that foreign exchange reserved at four times higher than the previous government but insufficient to tackle debt servicing while keeping the balance of payment situation under control.

He said that we were repeatedly told that the government inherited an economy which was on the brink but now the situation has been improved and another IMF loan will not be needed but it proved otherwise.

Pakistan credit rating was downgraded five years ago and upgraded two years ago but now the same credit rating agency and the IMF have voiced concern over the economic situation and warned of the growing vulnerabilities and other consequences.

Authorities argue that these trends are temporary while CPEC-related projects are implemented as growth will resume on a stronger trajectory once the projects come online but it is a little hard to believe, he said.