PBF demands PM help ensure export-led growth, ‘robust’ planning commission

ISLAMABAD: The Pakistan Business Forum (PBF) has demanded export-led growth and robust planning commission from the 24th prime minister of this country.

In a letter to Prime Minister Shehbaz Sharif, President Khawaja Mehboobur Rehman has extended his congratulations to the former on being elected prime minister for second time.

The letter stated it is evident that country faces multifaceted challenges, including issues related to dwindling economy, stability of the currency, competitive energy tariffs, and inflation. Comprehensive changes that prioritize strengthening revenue generation, encouraging export-led growth, strengthening fiscal management, and drawing in foreign investment are necessary to address these economic obstacles.

On agriculture, the PBF said that agriculture sector, the backbone of Pakistan is depleting. The input costs of the farmers are on high side. PBF urged from federal government for a comprehensive agriculture package which uplifts the farmer financially with the attractive KIBOR rate for small farmers included an affordable price for DAP and urea.

“We must understand Pakistan’s economy cannot reach the desired level of seven to eight percent GDP growth unless its agriculture sector grows at more than four percent as we have potential to bring around 22 million acres by combining both vertical and horizontal,” he added.

PBF President also drew the attention on the constant rise in the electricity tariff which was hurting the businesses and industry at large and in contrary Discos’ losses and inefficiencies stood at Rs77 billion during July-December 2023-24 as compared to Rs62 billion in the same period of 2022-23, showing addition of Rs15 billion in total circular debt stock. The total amount of losses, inefficiencies were Rs 160 billion during FY 2022-23.

Similarly, the Planning Commission has not evolved with changing economic, constitutional terrain to be able to make an impact that it used to in its heydays, he said adding that unfortunately role of Planning Commission is confined to build politically motivated infrastructure.

The PBF viewed that Commission must be independent of the Ministry of Planning, Development and Special Initiatives or any other ministry and must have its own procedures and rules of operation, so that it positioned as a national commission rather than a federal or provincial commission.

Khawaja Mehboob further stated a thriving business environment is essential for the overall development and prosperity of the country and in this regard regulatory institutions such as Securities and Exchange Commission of Pakistan and Competition Commission of Pakistan should be strengthened including the restructuring of state-owned entities to enhance their efficiency and financial well-being is required. This can be achieved by appointing independent boards and fostering competitive management teams, separating SOEs’ debt from the government’s liabilities, and considering public-private partnerships to optimise their performance and pave the way for potential privatization.

“Pakistan is among the seven most trade-averse countries in the world, with the highest average tariff among 70 countries, and there is a strong inclination toward import substitution in its economic policies. Industries such as automobiles, fertilisers, and capital inputs are protected with tariffs as high as 500 per cent on imports,” he continued.

The PBF president is of the view that the country’s adherence to this protectionist model has not provided solutions to the various macroeconomic crises, which include an unsustainable debt burden, high inflation, and increasing poverty. It is crucial for Pakistan to embrace trade as a tool for achieving sustainable and inclusive development and end its reliance on protectionism.

Copyright Business Recorder, 2024