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Updated 12 Sep, 2013 11:19am

Growth within IMF limits tough test for govt: FPCCI

KARACHI: Using the International Monetary Fund (IMF) loan responsibly and ensuring growth within the parameters of lender’s harsh conditions is the toughest of the government’s ability, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said on Wednesday.

In a press release, FPCCI president Zubair Ahmed Malik said that IMF policies were widely blamed for chocking growth while the PML-N is known for its pro-investment and pro-business policies

“This obvious contradiction will make it very difficult for the government to ensure growth, keeping the lender happy and without compromising the falling living standards of the masses,” he noted.

“We see ahead an era of further depreciation in exchange rate, monetary contraction, massive unemployment, dwindling exports, reduced forex reserves, missed revenue targets, double digit inflation and rising cost of production,” he added.

He said that gas levy estimated at Rs105 billion, 30 to 50 per cent increase in power tariff and 30pc escalation in domestic power price from next month could result in increased energy theft and decelerated power sector recoveries.

The business community doubts the accomplishment of the government’s stated objectives including pushing growth rate to 6pc in five years, fiscal deficit at 4pc, tax to GDP ratio at 15pc, investment to GDP ratio at 20pc, and generation of 10,000MW of electricity, the statement said.

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