KARACHI: The Federation of Pakistan Chambers of Commerce (FPCCI) on Saturday announced the formation of a ‘National Economic Think Tank’ to deal with economic challenges of the country.
Former caretaker Minister of Commerce, Gohar Ejaz said this during a press conference held at Federation House alongside United Business Group’s head S M Tanveer and FPCCI Senior Vice President Saqib Fayyaz Magoon, revealed that former caretaker Prime Minister Anwaar ul Haq Kakar will serve as the president of the National Economic Think Tank, former caretaker Minister of Finance Shamshad Akhtar as the Chief Executive, and Bashir Jan Muhammad as its chairman.
Gohar Ejaz said that due to the lack of policy continuity, the economy faces significant challenges. Under Vision 2030, the goal is to increase exports by $100 billion annually with a 10% growth rate. He stressed that the approach should now be to repay loans through business activities rather than borrowing more.
He mentioned receiving threats since initiating action against IPPs (Independent Power Producers). While the Special Investment Facilitation Council (SIFC) is there to provide facilities, it is the business community’s responsibility to bring in dollars. Ejaz emphasized that the current electricity prices are unaffordable for the public and all sectors, and that 40 IPP owners hold significant power.
He remarked that improving Pakistan’s economy in the current circumstances is akin to a jihad. The think tank aims to progress with the input of all stakeholders, which will also result in increased exports. The National Economic Think Tank includes 40 experts.
He pointed out that 11 years ago, Pakistan’s exports were $23 billion, and in 2023 they stood at just $27.5 billion. If exports had grown by 10% annually, they would have reached $60 billion in 10 years.
He said the think tank will have a chair for each sector, including law, health, commerce, and others.
He expressed pride in the nation’s armed forces. United Business Group’s head, S.M. Tanveer, during his address, noted that the country’s economy needs to move forward. For the past three months, they have raised the issue of IPPs, and people are now convinced that work is being done on this matter.
He hoped that issues related to IPPs would be resolved this month, stressing the need for electricity at Rs. 25 per unit.
Tanveer reiterated their commitment to improving the economy and bringing the Federation House in the right direction. He mentioned that a single economic policy must be devised, which would be implemented by any future government. He emphasized that only business community representatives can improve the economy, not political leaders.
He called on politicians to come to them and sign a charter of the economy, stating that industries often go bankrupt soon after being set up.
Former caretaker Minister of Finance, Shamshad Akhtar, said that the goal is to establish an autonomous institution that identifies national problems, including experts from every sector. Best practices from various countries will be analyzed. The state should not have too much involvement; instead, there should be public-private partnerships.
She emphasized the need for policies that attract investment into the country. She also mentioned that improvements in the economic landscape have led to a decrease in interest rates. The world does not operate solely on subsidies; instead, the focus should shift toward incentives, which are among the world’s best-designed systems.
Akhtar added that, in addition to government data, private sector data will also be needed. Pakistan has gone through many difficult phases, with numerous causes, but political instability is a primary issue. She also highlighted that better corporate governance is essential for running businesses. While IMF assistance can help with balance of payments, it does not resolve economic crises; for that, economic analysis and collaboration with the business community are necessary.
Prominent industrialist Bashir Jan Muhammad praised Gohar Ejaz’s efforts in addressing the electricity issue, noting that the high cost of electricity is the biggest problem for Pakistan’s trade and industry sectors.
FPCCI Senior Vice President Saqib Fayyaz Magoon highlighted that Pakistan is currently facing several economic challenges, with the energy crisis and IPPs being the most significant. He noted that exports are declining, and while the Prime Minister has focused on port and shipping issues, progress is very slow. He called for establishment of a long-term 30-year economic plan, as 5 or 10-year plans are not enough to stabilize the economy.
Copyright Business Recorder, 2024
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