LAHORE - The SBP Annual report is an eye-opener for both the policy makers and stakeholders and calls for effective policies with top-to-bottom implementation mechanism to regain macroeconomic stability during the ongoing year. In a statement issued here, the LCCI President Shahzad Ali Malik, Senior Vice President Sheikh Mohammad Arshad and Vice President Sohail Azhar said that the existing structural weaknesses in the economy, pointed out by the SBP, require improvement in macroeconomic discipline as well as continued reforms to improve the resilience of the economy. The LCCI office-bearers said that the government should focus on improving productivity, strengthening of public institutions, stabilisation of economic governance and building social safety nets to protect vulnerable segments of the population. They said that because of the recent devastating floods in the country, various FY11 macroeconomic targets have suffered serious setbacks and the government would not be able to achieve chief economic targets such as GDP, inflation, monetary growth, fiscal deficit, and current account deficit unless and until a well thought-out strategy is evolved in consultation with trade and industry representatives. The LCCI office-bearers said that the governments inability to restructure the revenue-sucking public sector enterprises, and the failure to resolve circular debt was also hitting the economy hard. They said that the LCCI, since its very inception, had been calling for continuity in economic policies but unfortunately never ever in the past a due attention was given towards this important issue. The LCCI office-bearers said that apart from economy related issues, the government should also evolve a strategy to control law and order situation in the country, as deteriorating law and order situation is the biggest impediment in the way of both local and foreign investments. They said that the government should have to ensure the participation of private sector while evolving a strategy for creating conducive business environment in the country. The LCCI office-bearers also urged the State Bank Governor to bring down the high rate of mark-up to ensure the availability of cheaper equity to the potential investors. They pointed out that despite the tight monetary regime inflation could not be brought down to the annual target of 9.5 percent. The SBP in its annual report projected that average CPI inflation would remain 13.5 to 14.5 percent, which clearly indicated that it was only hampering the trade and industry, they added. They urged the government to drastically cut the non-development expenditures, as the country was in a dire need of plenty of resources to rebuild the damages of floods. They said that in the post-flood reality, federal and provincial governments must carefully scrutinize and prioritise spending, and by increased focus on local level governance. But when even before the floods, there had been practically little change in the roles, responsibilities, and structures in both levels of government, despite a substantial change in resource distribution to provinces under the NFC Award.