ISLAMABAD: Economy has been put on the revival track while State Bank of Pakistan (SBP) will take immediate practical and result-oriented steps in consultation with Faisalabad Chamber of Commerce & Industry (FCCI) to further strengthen the economy and facilitate the business community, said Waqas Kashif Bajwa Chief Manager SBP Faisalabad.
Addressing a meeting at FCCI, he said that the bank-related complaints are resolved expeditiously while the office of Banking Ombudsman is also operational in Faisalabad. However, industrial and commercial sectors must be given awareness about this institution so that they could avail from its presence.
He said that Islamic banks are earning more profit as compared to the conventional banks. “However, the market forces may play its role in equitable distribution of profit after all banks are switched over to the Islamic banking by the year 2027”, he said and added that the SBP has fined many banks on unethical practices and its amount has been deposited in the charity head.
He said that the SBP is encouraging Islamic banking and in this connection, he could arrange a meeting of Sharia experts with FCCI members in order to dispel their apprehensions.
He stressed the need to enhance linkages and connectivity with the business community and said that FCCI is the right forum to cultivate cordial relations between SBP and business community.
Regarding delayed opening of LCs, he requested President FCCI to pinpoint a specific case so that the action could be initiated instantly. “The complaints beyond their mandate could be forwarded to the head office for necessary action”, he opined.
President FCCI Dr. Khurram Tariq explained in detail the prevailing economic situation and said that improvement is imminent which is expected to be consolidated in the second half of 2024.
He said that smuggling has been plugged which would generate economic activity within the country. “The balance of payment is also expected to further improve”, he said and added that marked difference in gas prices between Punjab and Sindh would also be trimmed to minimum.
He said that the SBP should focus on the early refund of DLTL cases. “Due to the shortage of dollars, the government has banned unnecessary imports which may trigger smuggling”, he said and added that the government must tackle this issue in a holistic manner.
Dr. Khurram Tariq said that ‘we are spending $6-7bn on the import of palm oil while the government is encouraging its local substitute in the form of canola in addition to incentivizing cultivation of palm along the 1100 kilometers long coastal belt’.
“Similarly, we are importing huge quantities of pulses to meet our domestic needs”, he said and added that the government has planned to produce these commodities locally which would give a cushion of another $3-5bn.
He calculated all these savings and said that enhanced cotton production will also help the textile sector to earn additional foreign exchange to the tune of $5-6bn.
He was optimistic that these steps would play a key role in stabilizing the national economy.
The President FCCI said that positive changes in the economy are imperative for our survival but in this connection good governance coupled with stringent measures are also required.
He stressed the need to maintain strategic balance and said that ‘we harvested a bumper cotton crop this year but the cotton growers are worried as they are not getting an appropriate price for their produce’.
He said that the government had assured to lift cotton price at Rs.8500 per maund but its price in local market is less than it. He said, “We should purchase the cotton crop at the agreed rate to restore confidence of the farming community. However, in later phases the market forces may be allowed to play their role in determining the actual price of cotton”.
About industrial production, he said that consumption of electricity is the basic yardstick to measure productive activities.
He said that Faisalabad is consuming 1500-MW of electricity which has now dwindled to 700-MW which clearly indicates our prevailing situation.
He strongly contradicted the notion that textile sector is demanding subsidies and said that the FESCO and GEPCO are bearing Rs.150 billion burden of other inefficient Discos.
He said, “Our demand is very clear and loud that cross subsidy should be eliminated.” He said that currently Pakistan has 24.2 million acre irrigable land and the government has decided to bring 9.1 million additional state land under plough exclusively for corporate farming.
“It is expected to generate additional production of 15-30%”, he said and added that ‘we must establish forward integrated industries to ensure reasonable prices to the growers’.
Ms. Qurrat-ul-Ain Deputy Chief Manager SBP and others were also present during this meeting.
