Karachi: President of a great Pakistani conglomerate, the AKD group, Aqeel Karim Dhedhi said on Wednesday that Pakistan had not been as hard by world rates as other countries.
The Price Plan of American President Donald Trump targets imports of almost all countries and includes withdrawals of at least 10%. This decision rocked Wall Street and aroused criticism from the experts who warn that it could increase costs and potentially trigger a global recession.
Trump has often cited unfair commercial practices as justification of increased prices, saying that they will arouse an resurgence of American manufacturing.
“The prices have created problems in the world, and although Pakistan is also affected, the impact here is not as serious,” said Dhedhi in his interview with Reuters.
“Pakistan exports are still low, while imports are high, so the effect of prices is smaller,” said Dehdi, adding that some inflation is expected, but not at the same level as in other countries.
Dhedhi also underlined the performance of the stock market. “The stock market worldwide has dropped from 14% to 20%, if you talk about Pakistan, the market has decreased by 5% of its peak,” he said. “We are in a better position, and the future does not seem bad” because the exports of Pakistan would now increase on the mining side, livestock, dairy products and the computer sector, he added.
Pakistan’s reference sharing index dropped 5% on Wednesday after the fall in world markets.
A 45 -minute market stop was launched after the crisis. However, the reference index increased last week after Pakistan reduced energy prices for national and industrial users, despite the world markets plunging following the American decision to place new trade prices with countries.
Dehdi has warned that higher prices could lead to inflation. “In the event of inflation, interest rates will increase, increased interest rates will cause unemployment,” he said. He added that the increase in interest rates could reduce bank deposits, and if the money flows, Pakistan’s reserves could drop slightly.
Commenting on the impact of American prices on Pakistan, Dr. Khaqan Najeeb, former adviser to the Ministry of Finance, said the prices would exert additional pressure on the national economy.
Talk Geo.tvNajeeb also urged the authorities concerned to focus on improving local commercial productivity and the reorganization of the energy sector.
“With a commercial volume of nearly $ 7 billion with the United States, Pakistan must now focus on strategic negotiations and improving local commercial productivity. It is only through structural reforms, such as the renovation of the energy sector, Pakistan can hope to mitigate the tension caused by this tariff taxation,” he said.
Abdul Rauf Shakori, a business lawyer based in the United States, argued that Pakistan must intensify its diplomatic efforts to resolve the issue. He explained to Geo.tv The fact that these prices, which are part of Trump’s “America First” agenda, could have serious ramifications if they are not proceeded proactively.
“Pakistan should prioritize negotiation with the US government for prices. The objective should be to highlight the mutual economic economic relations benefits and the disturbance that these prices will cause not only Pakistan, but for the global supply chain, “suggested Shakoori.
Maleeha Lodhi, the former Pakistan ambassador to the United States, shared a similar perspective. It argued that the increase in prices would inevitably make Pakistani goods more expensive in the United States, which will likely lead to a reduction in demand.
However, she underlined the opportunity for Pakistan to play a broader diplomatic role by taking advantage of the American-Chinese trade war to its advantage.