ICCI shows concerns over ballooning current account deficit - Press Release issued by Islamabad Chamber of Commerce and Industry.

Islamabad -- December 21, 2021 (PPI-OT)

Following is the text of press release issued by Islamabad Chamber of Commerce and Industry (ICCI)

Quote

Muhammad Shakeel Munir, President, Islamabad Chamber of Commerce and Industry (ICCI) has expressed great concerns over the ballooning current account deficit of the country that has risen to around USD 7 billion during the first five months (July-November) of the current fiscal year and called upon the government to take urgent remedial measures to arrest this dangerous trend as the surging current account deficit would put more pressure on our exchange rate, cause further depreciation of rupee and give rise to a new wave of high inflation in the country.

Shakeel Munir said that the current account deficit of Pakistan had reached record level of USD 20 billion in 2018, which had created multiple problems for the economy and the country had to go to the IMF to overcome its economic problems. However, with great efforts of the current government, this deficit was changed into surplus in September 2020, but it was again on the rise, which was not a good sign for the economy. He said it was unfortunate that being an agricultural country, Pakistan was importing wheat, sugar, pulses and many other food items, which also contributed to the rising current account deficit.

He emphasized that the government should extend full support to the private sector in producing imports substitutions in the country in order to reduce dependence on imports and improve exports in order to convert current account deficit into surplus. He stressed that to sustain the strong economic growth, the government should reduce policy interest rate, ensure availability of easy credit and long-term financing to the private sector in order to help expand export capacity of firms that would...