Vice President Saarc Chamber of Commerce and Industry Iftikhar Ali Malik here on Saturday said the government should introduce a budget that could trigger economic activity in the country. Speaking to business community at FPCCI Capital Office, Iftikhar Ali Malik said that foreign funds and investments had dried up which called for focused efforts to mobilise domestic resources.
"There is a break in growth since the last few years while the economy continues to nosedive which is a matter of great concern for the business community", he said. Saarc CCI Secretary General Iqbal Tabish, Media Chairman Malik Sohail and others were also present on the occasion.
Malik proposed a powerful economic revival council comprising former finance ministers, SBP governors, FBR chairmen, judges, business leaders, and technocrats which could guide government on economic matters. Politicians have failed to deliver therefore experts should be allowed to steer country out of economic mess, he said, adding Indonesian model could be followed after slight changes.
He was of the view that high interest rates and inflation were the natural outcomes of this heavy borrowing which must be curtailed. Iftikhar Ali Malik said that tendency of printing money was killing all efforts to stimulate growth while critical infrastructure continued to deteriorate.
Inability of government to address energy crisis was playing havoc with all sectors, especially industries and exporters, he observed, saying energy crisis was result of mismanagement as defaulters continued to enjoy electric supply. Priority should be given to education, health and water supply, unproductive expenditure should be reduced and printing currency should be stopped to guarantee gradual improvement, he said. He said that business community was looking forward for a balanced budget which could turn around economy.
At the occasion, Malik Sohail said that authorities should ensure that overall deficit did not exceed five percent of the gross domestic product (GDP). The public sector development programme (PSDP) should be two percent of the GDP which should not be axed due to political considerations, he added.
The government should aim at redistributing benefits towards poor and all general subsidies should be immediately replaced with targeted subsidies. The budget proposals should not be a useless ritual; he said, adding Pakistan could not afford to waste more time. He further said that influential sectors should be taxed in the budget while small traders should be spared.
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