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Karachi, The President of the Korangi Association of Trade and Industry (KATI), Johar Kandhari, has voiced serious concerns regarding the International Monetary Fund’s forecast that Pakistan’s trade deficit may surge past 27 billion dollars in the upcoming financial year.
According to Korangi Association of Trade and Industry, Kandhari attributed the expanding trade gap to rising production costs, the region’s highest interest rates, and stagnant export growth. He stressed that the challenging business environment is exacerbated by these factors, making industrial operations increasingly difficult. Kandhari urged the government to implement immediate economic policies, including cutting interest rates to single digits and reducing the costs of electricity and gas to stimulate industrialization and the establishment of new industries.
These measures, he argued, would not only alleviate unemployment but also boost economic activities. Kandhari emphasized the necessity for the government to collaborate with industrialists to develop a long-term economic policy that focuses on decreasing energy and production costs, which could help increase exports swiftly.
Additionally, the KATI President suggested controlling imports and reducing dependency on foreign goods by increasing duties on non-essential and luxury items. He expressed optimism that with proactive government action, in consultation with industry stakeholders, it might be possible to achieve outcomes that defy the IMF’s predictions.
The post KATI President Calls for Urgent Economic Reforms to Counter IMF’s Gloomy Trade Deficit Forecast appeared first on Pakistan Business News.