KARACHI Chairman of the FPCCI Advisory Board and National Business Group Pakistan, the President of Pakistan Businessmen and Intellectuals Forum Mian Zahid Hussain has warned that if politically difficult decisions are not taken and time is wasted, a mini-budget will have to be introduced in a few months, and Pakistan will never be able to get out of the debt trap.
He said Pakistan’s administrative structure has become an enormous burden. The country is overcrowded with ministries and departments, many of which are dysfunctional and unnecessary. Political recruitment has damaged many institutions, and pensions have become a problem.
Limited resources, senseless expenditure, lack of financial planning, and the policy of making economic decisions on political grounds have shaken the foundations of the country, he underlined.
He said that due to the wastage of resources, health, education, and other facilities are not provided to the people as they have a right to, and the country has to run through borrowing.
He said that it is encouraging that the IMF considers approving a loan of seven billion dollars for Pakistan this month. The IMF’s softening stance comes after two-billion-dollar loan guarantees, which may improve the overall economic situation.
Due to strict measures, Mian Zahid Hussain said the economy is ready to take off, but political stability is necessary. Political instability is currently the biggest obstacle to economic development. Volatility is considered necessary for the survival of a political party that always prefers politics of protest and unrest.
He said that the people of Pakistan have made a big sacrifice to get a loan from the IMF. The cost of electricity has increased drastically, tax revenue has increased by a record forty percent, and other measures have also been taken. Due to these measures, Pakistan’s financial condition has improved, and its global credit rating has increased.
He said that inflation has also reduced. Still, business activities will not resume until interest rates are reduced further, which is necessary to drive the economy and increase employment. Investment growth is only possible once interest rates fall further.
Copyright Business Recorder, 2024
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