PML-N’s pullout jolts business confidence

KARACHI, May 12: The PML-N’s decision to pull out from the coalition government over the judges’ issue has jolted the businessmen’s confidence. They foresee a worst economic meltdown if the judges’ issue is not resolved on a permanent basis.

At a time when the new budget is round the corner, they seek immediate settlement of the judicial crisis and want a stable government for economic development of the country.

President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Tanveer Ahmed Shaikh said that smooth running of a coalition government was must at the present juncture for the country.

The FPCCI president said that the issues of food inflation and joblessness were the most important and these could be solved by a united and strong coalition.

Saarc Chamber of Commerce and Industry President Tariq Sayeed said that if the judges’ issue would have been resolved on May 12, the road for the smooth economic journey would have been cleared.

“The business community wants the coalition to remain intact,” he said hoping that Mr Asif Ali Zardari would seriously ponder over resolving the judiciary crisis in the next 15-20 days.

He said that chaos had already gripped the economy as fresh export orders for Pakistani products were not forthcoming. Foreign buyers are reluctant to visit the country and even domestic investors had been on the sidelines waiting for a peaceful business environment.

President Karachi Chamber of Commerce and Industry, Shamim Ahmed Shamsi sees the only silver lining in Nawaz Sharif’s statement that his party members will only be leaving the ministries but will sit on the treasury benches.

There is a need to settle the judiciary issue immediately so that the businessmen’s confidence could be restored and trading activities could pick up, he said.

“There is virtually no economic policy as the new budget is hardly one month away. Food inflation and joblessness have hit the common man hard. The government has closed its eyes on rising oil prices in world markets and its impact on local oil prices followed by weakening strength of rupee against the greenback making imports costlier.“People are now in dire need of some relief. If the government cannot resolve the judiciary issue, it should at least make serious efforts to stem the food prices,” the KCCI president said.

Orange Association of Trade and Industry (Kati) Chairman Shaikh Fazl-e-Jalil said that businessmen were now really worried over the May 12 developments and looking forward as to when the economic confidence would be restored.

They need to know as to who will resolve the serious issues of meteoric food inflation followed by wheat and rice prices, power and gas load-shedding, and rising cost of living, he asked.

“Perhaps the most important issue of the common man is to curtail the prices, reduce their cost of living and providing them jobs,” he said adding that these issues have taken the back seat.

The judiciary issue is as important as the common man’s suffering but the inordinate delay in the reinstatement of the judges has also made other issues, like falling exports and rising trade deficit, as non serious matters.

He feared the possibility of food riots in the country if the government failed to address the issue of rising prices, hoardings, flour and rice crisis, smuggling and food shortage.

Site Association of Industry Chairman Nisar Sheikhani urged to take drastic steps for improving the economic indicators and controlling burgeoning trade deficit, rising domestic oil and food prices.

The government should seriously check the falling value of the rupee against the dollar, which indicates that the flight of capital has been increasing from Pakistan.

F.B. Area Association of Trade and Industry Chairman Idris Gigi said that for the last 14 months economic uncertainty had been looming over the country. “The government should take a firm decision in the best interests of the country so that business calm could prevail,” he said.

“No body in the government talks about serious issues like building new dams, new power plants, controlling inflation and boosting exports,” Idris said.

Traders Action Committee President Siddiq Memon said that only 10 per cent buyers turned up to the markets on May 12 as the bad news about disagreement on judges’ issue had hit the sentiments of both the businessmen as well as customers.

The markets are likely to face thin presence of buyers in coming days until the issue of judges is resolved completely, he said.

Mohammad Rizwan, an electronics dealer at Abdullah Haroon Road, said that the sales had been depressed since the judiciary issue was taking new twists every day. He added that dealers wanted political and economic stability so that consumers could return to the markets.