Weak economy can’t afford politics of confrontation: Zahid Hussain

KARACHI: Chairman of the National Business Group Pakistan and President of Pakistan Businessmen and Intellectuals Forum Mian Zahid Hussain has said the fragile economy cannot afford the politics of confrontation, civil disobedience and sabotage.

He said that political tensions in the country have reached a peak and if the issues are not resolved soon then the decline in the economy will accelerate.

He said the business community is worried over the escalating political conflict in the country as it is having a negative impact on the economy.

The tradition of holding rallies, processions, protests and strikes, and engaging in violence and vandalism for political purposes is an old one in the country and businessmen have been annoyed by such activities; so the government and the opposition should find a solution to it.

Zahid Hussain said that since the May 25 protest march, the country has suffered a loss of an estimated Rs 60 billion in terms of lost economic activity, while revenue collection has been hit to the tune of Rs 20 billion and exports to the tune of Rs 16 billion.

He said that thousands of shipping containers of industrialists and exporters were used to stop the protesters, causing the loss of billions of rupees to the business community and the country.

Before the recent protests, a sit-in was allowed in Islamabad for 126 days which did not change the government but the delay in reaching the CPEC and other vital agreements resulted in the loss of billions of dollars to the national economy and tarnished the image of the country.

He further said the increase in interest rates by the central bank will not help the economy but will increase inflation and unemployment although the decision may stabilise the exchange rate and reduce some of the uncertainty in the market.

The move will serve to reduce business activity, increase debt and reduce the capital available to the industrialists.

He was of the view that the latest increase in prices of petroleum products would improve the economic situation of the country, increase inflation and pave the way for obtaining loans from the International Monetary Fund and friendly countries.

There is an urgent need for targeted subsidies for the lower middle class and the poor, he added.

Copyright Business Recorder, 2022