Business Community Expresses Concern Over Persistent Dollar Shortage

Mian Zahid Hussain, serving as Chairman of the National Business Group Pakistan, President of the Pakistan Businessmen and Intellectuals Forum, President of the All Karachi Industrial Alliance, and Chairman of the FPCCI Advisory Board, has voiced significant apprehension among the business community regarding the ongoing dollar scarcity that has persisted for several months, demanding immediate resolution.

He emphasized that the dollar deficit is compelling numerous traders to seek recourse in the black market. This situation highlights the urgent necessity for well-considered policymaking and prompt action to reinstate business confidence through ensuring sufficient access to foreign currency.

According to Mian Zahid, Pakistan successfully achieved various vital economic goals by the conclusion of the previous fiscal year, including a current account surplus exceeding $2 billion, augmented foreign exchange reserves, and historically high remittance inflows. He noted that the surplus indicates enhanced performance within the external sector.

However, in spite of this encouraging advancement, the sustained dollar shortage is still a major concern. He further clarified that the State Bank’s unusually large-scale dollar acquisitions are compounding the issue, thereby intensifying the difficulties faced by the private sector in procuring foreign currency.

Mian Zahid commented that the continuing austerity measures and the sluggish implementation of reforms, in spite of debt deferments and the achievement of targets, are both surprising and worrisome. He also drew attention to the reservations held by the business community concerning the recent discretionary powers granted to the Federal Board of Revenue, stressing that instead of imposing more stringent enforcement measures, there is a need for reform policies that support taxpayers.

He implored the State Bank to establish equilibrium in its foreign exchange procurement activities to rebuild market confidence. He further urged the government to embrace a more lenient, transparent, and collaborative approach to tax reforms.

He stated that, together with enhancing tax collection, endeavors should equally concentrate on growing the size of the economy. Rather than targeting a $412 billion GDP, the nation should pursue the $1 trillion target as envisioned by the prime minister, which can only be realized through collaboration with the business sector.

Mian Zahid concluded by asserting that while the possibility for stability and expansion is present, it necessitates a shift away from control-focused policies and toward enduring structural reforms. He proposed that the FPCCI, the State Bank, and the Ministry of Finance should collectively formulate a transparent policy structure to diminish market instability and augment investment opportunities, which are essential for steering Pakistan onto a path of sustainable economic progress.