'IMF programme has given us inflation, economic stagnation'

Former finance ministers, prominent industrialists and economists have expressed great faith in the economic potential of the country provided we set our house in order, improve governance and tax collection and remove losses of govt owned industries.
Former finance minister Sartaj Aziz, Salman Shah, Shaukat Tareen, Jehangir Tareen, Humayun Akhtar, industrialist Mian Mohammad Mansha, and editor Pakistan Today Arif Nizami addressed a pre-budget seminar on economic revival here on Sunday.
Former finance minister Salman Shah stressed the need for self-reliance and strongly opposed the IMF support programme. "IMF programme has given us inflation and economic stagnation during past three years," he pointed out.
"Our investment is falling sharply, credit rating has fallen, debt has doubled and stock volume is down from 16,000 to 5,000 points, poverty has gone out of limit, and bank interest rate has gone up to 14 percent. Our private sector is shy of making further investments in the country", he added.
Salman Shah suggested that the government should support the SMEs that can create jobs for millions of people. He also called upon the government to immediately start construction of Kalabagh dam to get 3,600 MW cheap electricity at the rate of Rs1.50 per unit and provide additional irrigation water to south Punjab and Sindh. This project can be completed in five years.
Prominent agronomist and former federal minister Jehangir Tareen said that with a little effort Pakistan can increase its cotton production from 12 million bales to 20 million bales which means addition of $8 billion in the national economy. "There has been zero percent research in the agriculture sector during the past 40 years which is a criminal negligence as other countries in the region have increased agriculture production manifold during this period, he added.
He said though we need more dams, yet we must also learn to use available irrigation water economically as we waste 30 MAF water by over using it on crops in a year.
Livestock is another sector, which has vast potential but is vastly under-utilised. By developing this sector we can provide good quality milk, Ghee, meat, and beef at affordable prices to the people besides provision of hides and skins for our valuable export leather industry.
Jehangir Tareen suggested that the government should reject foreign aid with unreasonable conditionality and develop abundant local resources for economic growth.
Prominent industrialist and banker Mian Mohammad Mansha said that we must think out of the box solutions for our economic growth. It is imperative that the government should plug the leakages in revenue collection by the electricity distribution companies and the FBR. He said in Sindh province only 40 percent and in Balochistan 20 percent consumers pay their electricity bills while 20 percent oil for power generation is stolen.
Mian Mansha pointed out that due to energy crisis, 130 textile mills have been closed. He said Bangladesh which does not produce one bail of cotton and has limited physical resources has left Pakistan far behind in export of made ups and value-added textile products.
He further suggested that the government should privatise its enterprises like PIA, Railways etc that are burden on its meagre resources. Similarly it should also privatize electricity generation and distribution companies to limit the line losses and the circular debts.
Former finance minister and veteran economist Sartaj Aziz pointed out that Pakistan has an installed capacity of 19,500 MW electricity production yet it is generating only 12,500 MW electricity causing a shortfall of 60,000 MW electricity between demand and supply. " If the government gives priority to put these closed power producing units of 6,000 MW into operation, there would be no load shedding and closer of thousands of industrial factories in the country, he pointed out.
He further suggested that the government should cut down losses of public sector enterprises, which are eating up Rs300 billions annually. He said the State Bank should reduce the interest rate and bring it to a reasonable level so that the private sector could make investment in new industries and enterprises.
"Though general law and order situation hindrance in the way of big investments in the private sector presently, yet the SMEs can still operate in large numbers and provide jobs to the educated youth, he added.