All Pakistan Textile Mills Association (APTMA) urged all political leaders and policymakers to develop a consensus on navigating the situation of extreme distress and pulling the economy out of the current downward spiral. The APTMA, in a statement, said that Pakistan is currently on the brink of economic collapse. With depleting foreign currency reserves, rising inflation, the exchange rate in free fall, and irrationally high-interest rates, the country is headed towards a path similar to the economic downfall of Sri Lanka.
The association said a lack of political stability is a severe impediment to economic progress. Not only does it shorten policymakers’ horizons leading to suboptimal short-term macroeconomic policies, but it is also the cause of frequent policy U-turns and leads to non-completion of ongoing projects. Stability and consistent policy implementation are crucial for economic growth and for the export sector to thrive and contribute dollar earnings to stabilize the Balance of Payments for a sustainable economic outlook.
Chairman APTMA Rahim Nasir said, “Political instability seriously impedes economic progress. Not only does it shorten policymakers’ horizons leading to suboptimal short-term macroeconomic policies, but it is also the cause of frequent policy U-turns and leads to non-completion of ongoing projects. Stability and consistent policy implementation are crucial for economic growth and for the export sector to thrive and contribute dollar earnings to stabilize the balance of payments for a sustainable economic outlook.”
The current account deficit increased by 517% in FY22 compared to FY21, he pointed out and urged that steps should be taken to reduce the import bill by at least $5 billion, especially energy, by ensuring energy efficiency. Shockingly, petroleum imports increased by 50 percent in June 2022 in volume terms. Pakistan imported petroleum products worth $24 billion last year.
Gas needs to be used for productive purposes only. Currently, gas is being supplied to ceramics, steel, and glass also, and declare an energy emergency and introduce measures to conserve energy which can save Pakistan’s economy in more ways than one. He suggested that aggressive conservation would cut import bills by more than 25% and save $6 billion. “Implement price and administrative measures to curtail consumption and domestic gas supply to reduce consumption and waste by 18% UFG.”
