The Islamabad Women’s Chamber of Commerce and Industry (IWCCI) on Sunday expressed concern over rising inflation and economic slowdown which is adding to the miseries of the masses. Government should take immediate steps to contain inflation otherwise it may miss the target of keeping inflation at 8 per cent in the on-going fiscal, said Farida Rashid, President IWCCI. In a statement issued here today, she said that high inflation will compromise Pakistan’s bargaining position with the international lenders during negotiations. There is no chance of any improvement in the income of masses therefore rising inflation will result in more poverty, reduced savings, decreased investments as well as contracted growth rate, she added. She warned that inflation would erode local currency while the central bank will have no option but to hike the policy rate in the first monetary policy under the new political setup. Farida Rashid said that upward revision of interest rates will make loans costly for government as well as business community which will cast a negative shadow on economy.It will force many businesses to become uncompetitive resulting in lost opportunities at home and abroad, colossal losses, bankruptcies, lower tax collections and unemployment, she warned. Farida Rashid said that credit of recent wave of price hike goes to the fiscal policies of the former government while the recent steps like hike in Sales Tax and increase in prices of electricity and petroleum products is also to be blamed. Absence of proper mechanism to check prices during the holy month of Ramadan has also contributed to the hike in prices of food items, she added. She said that situation can improve if the PML-N government successfully fulfils its reform agenda that comprise reduction in budget deficit, attracting foreign investment, taming energy crisis and control precarious law and order situation. All the stock markets performed well ahead of the Eid holidays which could be attributed to the confidence of portfolio investors in the government economic policies.
