UNISAME URGES STATE BANK TO IMPOSE DEBT CEILING ON GOVT BORROWINGS

The Union of Small and Medium Enterprises (UNISAME) urged the State Bank of Pakistan (SBP) to impose a debt ceiling for government borrowings and fix a debt limit to inculcate efficiency in the government spending and borrowings and compel the government to remain within the parameters of an healthy economy by good financial management and governance.

President UNISAME Zulfikar Thaver said the SBP is a sovereign body and entrusted with the task of objectively overseeing the financial affairs in line with the fiscal policy of the government but has the bigger responsibility to ensure financial stability of the economy as a whole and by virtue of this empowerment it has to draw the line.

He said the SBP is duty bound to impose upon the government to remain within limits and as the custodian of the treasury influence upon the government to cut down expenses wherever possible and focus on development and utilize the borrowings accordingly in the best interest of the nation.

Thaver lamented at the devaluation of the rupee and urged the SBP to take measures to protect the rupee by ensuring that the imports are with declared money and not undisclosed money which is being used to import goods.

Secondly amounts are transferred daily by exchange brokers by purchasing dollars from the open market.

Thirdly the Afghan transit trade needs to be looked into seriously and the negative aspects removed which enable the goods to re- enter Pakistan and deprive the exchequer of revenue and prove a burden on the economy due to the under invoicing causing the buyers to pay for the real value to overseas exporters through Pakistani exchange brokers.

Posted in: Press Releases