Risk of debt default: APTMA demands 'energy emergency' in Pakistan

KARACHI: All Pakistan Textile Mills Association (APTMA) has expressed concern over the country’s economic situation and demanded the government to impose ‘energy emergency’ in Pakistan, ARY News reported on Friday.

In a statement, the APTMA suggested the government declare ‘energy emergency’ and introduce measures to conserve energy “which can save Pakistan’s economy in more than one ways’

The APTMA said that Pakistan was currently on the brink of economic collapse. “With depleting foreign currency reserves, rising inflation, rupee free-fall and irrationally high interest rates, the country is headed towards a path similar to Sri Lanka,” it added.

The association said a lack of political stability is a serious impediment to economic progress. “Not only does it shorten policymakers’ horizons leading to suboptimal short term macroeconomic policies, but it is also the cause of frequent policy U-turns and leads to non-completion of ongoing projects,” it maintained.

Chairman APTMA Raheem Nasir said that emergency measures and long-term policy were needed to revive the economy.

“The need for a long-term policy featuring lower interest rates cannot be underestimated, and its implications for a brighter economic future which generates foreign currency, jobs and international recognition cannot be denied,” it added.

The APTMA urged the government to prioritize export-led economic growth. “Enhanced exports enable the inflow of foreign currency to finance imports, service debt, stabilize exchange rates and to overcome the persistent problem of the balance of payment deficit.