Page 10 - CMA Journal (Mar-Apr 2023)

Exclusive Interview Exclusive Interview
Exclusive Interview

Mr. Atif Ikram Sheikh

a
n
President, The Federation of Pakistan
PCCI)
Chambers of Commerce & Industry (FPCCI)
“
s
,
To fix the recurrent economic crisis,
is
ke
it is crucial to look towards nations like
Turkiye and Indonesia, which have

effectively navigated away from IMF

successful policy-making

dependencies, as models for “
ICMA: How does FPCCI assess the current economic businesses including contractionary monetary policy,
situation in Pakistan and its recent engagements with removal of tax exemptions, adoption of a flexible
the IMF? exchange rate, and increased energy tariffs. Analyzing
past IMF engagements, the average industrial growth
President FPCCI: The incompatibility between the IMF
and GDP growth were lowered by 2.27 and 1.44
programs and the evolving dynamics of Pakistan's
percentage points respectively during periods when
economy has emerged as a significant challenge with
most of the IMF reforms appearing counterproductive Pakistan underwent IMF programs as compared to
periods without IMF programs. The FPCCI has raised
such as curbing supply-driven inflation through
concerns over these reforms increasing operational costs
persistent raises in the policy rate and adoption of a
for businesses, challenging their competitiveness both
flexible exchange rate which only increased the volatility
of the Pakistani rupee and have adversely impacted the domestically and internationally.
economic growth. FPCCI has always emphasized ICMA: What strategies does FPCCI propose for
building a consensus on the long-term economic plan addressing Pakistan's debt burden?
with clear objectives and economic targets, specifically
President FPCCI: Addressing Pakistan's debt burden
tailored to Pakistan's economic context. To fix the involves strategic and prudent debt management. The
recurrent economic crisis, it is crucial to look towards
FPCCI, in its research report titled "Impact of IMF
nations like Turkiye and Indonesia, which have effectively
Programs: A Context of Pakistan," proposes several
navigated away from IMF dependencies, as models for
strategic measures. These include aligning monetary
successful policy-making.
policy with fiscal outcomes and reducing the policy rate
ICMA: As per FPCCI, what are the implications of IMF to reduce the debt servicing cost that adds on every year.
conditions on Pakistani businesses? Secondly, reprofiling (shifting to long-term domestic
debt during low inflation) and restructuring of both
President FPCCI: The engagement of Pakistan with the
IMF typically necessitates economic reforms that impact domestic and external debt is inevitable to mitigate the
country's escalating debt issues.

8 ICMA’s Chartered Management Accountant, Mar-Apr 2024 5