Lucky Cement urges govt to take export measures

Pakistan's business tycoons and economic experts, including the cement industry conglomerate Lucky Cement, have suggested a media debate on the forthcoming federal budget 24, to be presented in parliament on 11 June 2023.  The country aims to apply for another International Monetary Fund (IMF) programme to fulfil its growing foreign debt repayment issues and other liabilities.

Recall that the IMF has not yet released the US$1.1bn loan tranche, originally due in November 2022. This altogether put pressure on dwindling foreign reserves. The foreign exchange reserves held by the central bank fell by 0.12 per cent weekly to US$4.46bn, according to data released by the State Bank of Pakistan (SBP) until 28 April 2023. 

There was a consensus among them that Pakistan will have to boost its exports (including cement/clinker), rationalise imports and hike tax revenues to restrict the twin budget and current account deficits, reports GEO TV.

Lucky Cement CEO, Ali Tabba, stated that policymakers must sit together to devise a strategy for the next IMF programme to be the last fund programme. Similarly, it requires a roadmap to boost exports and restrict imports, which can be financed through non-debt-creating inflows. He said he did not know the options available to generate dollar inflows from bilateral partners without IMF programmes. He warned that default would have dire consequences as inflation, which stood at 38 per cent now, might surpass 70 per cent. He also predicted a massive devaluation of the rupee in case of default.