IMF’s treatment failed to improve economy: Business leader

ISLAMABAD (INP): Runaway inflation, unemployment and contracting economy have become major concerns for the people as well as the dejected business community as the IMF’s prescriptions has failed to resolve problems, a business leader said Saturday.

The IMF provides financial assistance to countries in economic trouble but its policy proposals seldom yield positive results and it diverts resources from the health, education and other social sectors to repay external debt, said Shahid Rasheed Butt, former president ICCI.

He said that IMF’s fiscal targets prompt reductions in health investment which is contrary to the key objective of the United Nation’s Sustainable Development Goals.

People in Pakistan lacks a tendency for savings that is imperative for national development. Now the economic hardships have made it impractical, therefore, foreign investment should be encouraged, he added.

He said that the foreign investors should be encouraged so that they can boost investments in Pakistan.

The recently withdrawn incentives and exemptions must be revisited while their pending refunds of Rs80 billion should be paid without delay.

The business leader said that foreign investors are uneasy over lack of coordination between centre and provinces, the delayed process of dispute resolution, hiccups in the repatriation of profits and weak enforcement of contracts which should be improved without further delay.

Shahid Rasheed Butt said that political instability, 30 percent devaluation, runaway inflation, 13.25 percent interest rates, and energy prices have also become serious problem for the foreign investors and their cost of doing business in increasing continuously which should be noticed.