Nishat Group delegation meets Hafeez Shaikh.

ISLAMABAD -- A delegation of Nishat Group has met Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh to apprise him of the damages done by the COVID-19 related economic downturn to large scale manufacturers (LSM).

Advisor to Prime Minister on Commerce Razak Dawood, Minister Industries Hammad Azhar, Dr Ishrat Hussain, Finance Secretary and Chairperson Federal Board of Revenue (FBR) were also present in the meeting, according to a press statement issued by the Finance Ministry here the other day.

The delegation shared that the COVID-19 induced demand compression while the size of balance sheets of large manufacturers was not maintainable, adding the major contributory factor was massive labour cost specially in labour intensive industries like garments sector.

Any arrangements of avoiding permanent laying off or furloughs are putting excessive strains on the liquidity position of businesses, which are anticipating slow economic recovery, hence hedging against potential solvency issues.

The delegation head stressed on an enhanced role by the government to ease liquidity position of large businesses, highlighting the need for crafting scheme for cost-sharing between public and private sectors. On the occasion, the finance adviser empathised with the participants and updated them about the current status of implementation of the prime minister stimulus package...