Interactions – IFIs and local business in Pakistan

Pakistani businessmen in the largest, prosperous province Punjab, responding to the advice furnished by the World Bank:

…the cost of doing business is increasing due to our exposure to IFIs-imposed structural reforms’ conditionalities and cross conditionalities resulting in higher oil prices, utility charges and tighter fiscal policy and monetary policy.
Today, we are again faced with an imminent slow down in the manufacturing sector due to withdrawal of subsidies especially from oil, gas and electricity. In the Budget 2008-09 the government announced reduction in important subsidies for food, oil, gas and electricity.
The LCCI Vice President Shafqat saeed Piracha said that cost of doing business is set to further rise in Pakistan due especially due to misplaced and ill-timed withdrawal of subsidy on oil, gas and electricity.
This is going to suppress industrial development growth in Pakistan. This is especially going to suffocate the development of SMEs in manufacturing sector that despite lack of policy focus and difficulties in accessing credit and modern training facilities played an important role in employment generation and exports since the mid 1970s.
Instead of imposing micromanaging our economy and imposing harsh conditionalities on us the IFIs and the World Bank should provide us more help in the areas of technical knowledge and skills for improving our social and physical infrastructure.

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