Pakistan facing multidimensional crises: major surgery required for economic stability: Kardar

Major surgery is required for economic stability in Pakistan facing multi dimensional crises. Two million youth enter employment market every year but only 0.9 million get jobs. "We will have to increase growth rate from 3 to 8 per cent to provide employments to the youth. To ensure eight per cent growth rate we should fetch investment rate to 30 per cent, which is 19 per cent at present in Pakistan."
These thoughts were shared by Former Governor State Bank Shahid Hafeez Kardar while talking on the topic of "Economic Policies of the Present Government" at TECH Society Club on Sunday.
He said, "Solution to the basic economic problems is required as the treatment of ill economy cannot be treated on the basis of symptoms rather surgery."
Kardar said that all problems could not be resolved on priority basis with limited financial resources. "If we want to progress like China and India where investment has reached to 38 per cent, we should bring our national savings up to 15 per cent. Kardar said that it would be further difficult for Pakistan to enjoy foreign aids after the departure of American forces from this region in 2014.
After paying external debts and meeting defence expenditure running cost of the state exceeds from available financial resources. Kardar said that it was astonishing that there were 0.4 million of industrial electricity connections in Pakistan but only 46,800 were paying taxes to the government.
Pointing out the reasons of improvement in stock exchange shares, Kardar said that it was due to the large scale investment by small local investors in view of growing trust on the present regime. He also appreciated the private sector for providing jobs to the youth on the basis of their capabilities.
Kardar emphasised the need to adopt a strategy at national level to face the challenge of providing jobs to the 50 million youths in the years to come for which a realistic taxation system is necessary. Investment should be made in the city in which revenue collection is high, Kardar added.
On the occasion, Dr Muhammad Sadiq said, "The government needs to reset priorities to provide basic amenities of life to the citizens like the supply of pure drinking water, health facilities, employment and sewerage system."
Qayyum Nizami said, "Pakistan has become a security state instead of a welfare state. Agriculture and industrialisation should be the bases of our economy but unfortunately agriculture contributes just three per cent and industry up to two third only."
Nizami said that elite economy was increasing distances between the poor and the rich classes due to unequal distribution of resources. He quoted the statement of former Governor State Bank of Pakistan Ishrat Hussain who said that formal economy was going down while informal economy was escalating rapidly in the country. Nizami also gave a reference of the FBR according to which 4 million people should give taxes whereas only 100 companies were paying 80 per cent of total tax collections in Pakistan. Unfortunately, as compared to direct taxes, the government of Pakistan was collecting indirect taxes promoting price-hike, Nizami added.
Engr Abdul Majeed Khan and Jameel Gishkori also spoke on the occasion.