Dollar Shortage Pressures Pakistan’s Business Community

Karachi: The persistent dollar shortage in Pakistan is causing significant concern among the business community and prompting some traders to resort to the black market, according to Mian Zahid Hussain, a prominent business leader and former provincial minister. Hussain emphasized the need for immediate policy measures to restore business confidence and ensure the availability of foreign currency.

Despite Pakistan achieving a current account surplus of over $2 billion and increased foreign exchange reserves by the end of the last fiscal year, the ongoing dollar scarcity continues to be a major issue. Hussain noted that the State Bank’s large-scale dollar purchases are worsening the problem and making it harder for the private sector to access necessary foreign currency.

Hussain also expressed concerns over the Federal Board of Revenue’s new discretionary powers, advocating for reform policies that facilitate, rather than penalize, taxpayers. He called for a balanced approach in the State Bank’s foreign exchange operations and urged the government to adopt more transparent and collaborative tax reforms.

He stressed the importance of expanding the economy’s size, suggesting that rather than aiming for a $412 billion GDP, Pakistan should strive for a $1 trillion benchmark. Achieving this, he said, requires cooperation from the business sector and a shift from control-oriented policies to long-term structural reforms.

Hussain concluded by recommending a joint effort by the FPCCI, the State Bank, and the Ministry of Finance to create a clear policy framework. Such a framework is essential to reducing market uncertainty and boosting investment opportunities, which are crucial for Pakistan’s sustainable economic growth.