KARACHI: The President of Forex Association of Pakistan (FAP) Malik Bostan has pointed out that the problem related to dollars is becoming serious as its value continues to rise across the globe. On the other hand, former President of FPCCI Shamim Firpo claimed that Pakistan has already gone bankrupt, saying “if I claim to have no money for payment, it means I have already faced economic default.”
According to details, talking to MM News, the FAP President Malik Bostan said that Euro and Pound Sterling lost their value by 10%, and entire world economies were faced with slowdown due to war in Ukraine. The US, he said, interest rates from 0 to 4.5%while in Pakistan, the whole economy was washed away due to floods.
During the course of interview, Malik Bostan said “the flood swept away our 70-year-old savings. Those whom Allah has given money, may Allah give them guidance too. Whoever got the money, started playing with country’s economy. What is found to be short in availability in Pakistan, (certain mafias) create a crisis and starts betting. Let alone the dollar, these people don’t even spare the Panadol (tablets).
Malik Bustan said although the world was assuring that Pakistan was not facing economic default, however, “our own people did not believe it since mafia exaggerated it.” He said the government wanted to stop ‘dollarization’, but people created a crisis by buying dollars from the black (open) market. “Every day 15 thousand people travel to Afghanistan and the government had allowed $1000 per person,” he added.
He said even by legal means, millions of dollars move out to Afghanistan from Pakistan every day. He said during a meeting with Finance Minister Ishaq Dar, “I suggested that instead of dollars, people should be bound to carry Pak or Afghan currency.” Officially, he said, Pakistan couldn’t bar anyone but by introducing certain restrictions, the outflow of dollars could be stopped, adding that some 300 to 500 containers went to Afghanistan every day.
On the other hand, former president FPCCI Shamim Firpo while talking to MM News said that technically, Pakistan has gone bankrupt, i.e. faced default, adding that hundreds of containers were parked at the sea port and the bank had no dollars to clear them off, and that factories were closing down. In the coming times, he said, “I don’t see where the dollars will come from to the government.” He further said that m ore than 50% of our export industry had shut down.
The former President of FPCCI said that unemployment was increasing among the masses, which would eventually result in open loot and plunder on the streets. He said “I witnessed a flour truck was being looted at one place. What else could be be worse conditions than this?”
“I have not seen such bad conditions in the country till to date. If a federal minister says that there is no money for imports, that is the default,” he added.
Shamim Firpo said that the economic default has already been acknowledged and there was no need for open acknowledgment. Economic default would make things very expensive as during the era of Imran Khan government, flour was available at the rate of Rs 42 per kg, which would not even available at Rs 180 per kg today, he added.
He asked in such difficult times, where the poor masses would go? The rice that used to be available at Rs. 60 to Rs. 80 per kg was now available at Rs. 250 per kg, Pulses were available for 330 rupees per kg. “Where will people eat when things become so expensive? he asked, adding that Oil, which was earlier available at Rs 100 a litre, is now at being sold at the rate of Rs 600 per litre. “Will people kill and eat each other? he asked again, adding that a commoner somehow has to do something to feed his children.
Shamim Firpo said what a poor man would do when on the one hand, he faced with sky rocketing inflation and on the other hand, rising unemployment. Industries have resorted to down sizing, employees are being fired, we pray that Allah Almighty may have mercy on our situation and does not show us the time that is feared,” he said, adding that ‘may be Allah will show us some miracle and such a time will not come. May Allah protect us from such a time.”
