Business community fears deterioration in economy

[LahoreEstate]

KARACHI: Business community expressed fears on Wednesday that in the wake of disqualification of former Prime Minister Nawaz Sharif and his brother Shahbaz Sharif and subsequent imposition of governor’s rule in the Punjab, there would be deterioration in the already distressed economic environment.

Federation of Pakistan Chambers of Commerce and Industry President Sultan Ahmed Chawla said the decision would harm economy, and hit economic indicators. Foreign and local investors, he said, would avoid investing in Pakistan.

The trust of businessmen has been shaken after disqualification of the two PML-N leaders, he maintained.

Political decisions should be made in a manner that these do not harm fundamentals of trade and business, he was of the view.

Karachi Chamber of Commerce and Industry President Anjum Nisar said that the country ‘is now definitely moving towards political de-stability.’

The business community cannot question court verdict and is not in a position to say something.

‘I am in the UAE attending an exhibition, and the news of disqualification of Nawaz Sharif has led to anguish among foreign investors,’ he claimed.

He said many trade bodies in the Punjab have decided about a protest, but the KCCI had not yet taken any decision.

The economy, he said, would see real impact of the decision in the days to come.

In order to avert the negative impact of Sharif brothers’ disqualification on trade and business, the government should invite business community and take measures to boost businesses confidence. In case the government fails to provide a business-friendly atmosphere, the country would miss export target for the current year, and it would also result in a decline in foreign investment, he said.

Site Association of Industry Chairman MA Jabbar warned that investment would be stalled due to continuation of political uncertainty. Stability and macro-economic indicators would be affected, and the country may not be able to meet IMF conditions.

The new development would have an overall negative impact on economy, as terrorism, coupled with political uncertainty, may further disturb law and order, and hence there are bleak chances of early revival of economy, he said.

The country presently needs investment for strengthening industrialisation, he said, adding it could only reduce pressure on jobs.

Karachi Wholesale Grocers Association Chairman Anis Majeed said traders were anxiously considering putting on hold their future plans.

Majeed added that many big wholesalers, who used to invest in huge stocks, are considering liquidating their stocks.

‘The wholesalers are upset as businessmen do not like working in a situation of political confrontation,’ he said. Alliance of Market Associations chairman Atiq Mir said that there was a marked decline in consumers’ presence in the market on Wednesday after the decision.

Shopping season actually starts from Rabi-ul-Awal but it seems that business activities may remain depressed in the days to come as both buyers and traders are not certain about future business atmosphere.

‘Now traders are talking about looming anxiety and fears after Wednesday’s developments,’ he said.

He urged the government to create an atmosphere of understanding. The government should also hold meetings with businessmen to revive business activities.

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