The Exchange Companies Association, after terming new IMF deal a major challenge to the country, has urged the government to minimize its expenditure and control flood of inflation, reported 24NewsHD TV channel.

Exchange Companies Association General Secretary Zafar Paracha told media on Saturday that the government in order to get loan from the IMF first increased the gas price by 250 percent and later power tariff was hiked by 100 percent.

He said hike in such a proportion was injustices to the public and business community in the country.

He said government should take radical steps to control dollar prices and smuggling which was eroding economy of the country.

Exchange Companies Association General Secretary said earlier the interest rate were increased to 22 percent and now sales tax was increased by one percent to 18pc.

Zafar Paracha said the new IMF conditions will bring more inflation, the government should have mercy on the people.

He said the biggest problem right now was foreign exchange reserves. State Bank of Pakistan has only $8 billion dollars, which included deposits from friendly countries.

He advised that the government should consult with all stakeholders to increase foreign exchange reserves. He suggested action should be taken against illegal dollars flight and smuggling.

He also recommended to the government to give a long-term economic policy, adding that the caretaker government's policies have to be continued.  

Exchange Companies Association General Secretary said Special Apex Committee of the Special Investment Facilitation Council (SIFC) should be strengthened to increase foreign investment.

He admitted that the caretaker government took important steps which will help Shehbaz led new government.

Reporter: Ashraf Khan