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Pakistan Industrial and Traders Associations Front (PIAF) has said that achievement of better GDP growth rate has become meaningless on account of increase in cost of doing business and widening trade deficit. The PIAF chairman Irfan Iqbal Sheikh in a statement on Friday said that the business community were finding it hard to believe the government announcement in respect of high GDP growth rate and increase in foreign exchange reserves because they were finding it hard to make both ends meet on account of unchecked increase in cost of doing business.
He said the declining exports and widening trade deficit posed a serious threat to economic growth and required to be tackled on priority basis. The government should also find a lasting solution to the problem of high prices of foodstuffs instead of opting for imports from India. "Business friendly policies must be adopted as other neighbouring countries of the region are giving to trade and industry. The amount specified in trade policy should be utilised for the promotion of exports by giving incentives to the trade and industry and by exploring new markets" he added.
Sheikh said the people would accept the government claims on economic growth and prosperity only when their problems would be solved and the essential commodities and utilities would be available at fair prices. The government should ensure availability of electricity, gas, diesel and water to trade & industry and agriculture at low rates to facilitate reduction in prices of foodstuffs and industrial products, he added. He said the government should pay special attention to poverty alleviation and job creation because class hatred was likely to increase on account of growing poverty and unemployment. He said the government should also promote the culture of simplicity to discourage the race for acquiring wealth.
The government should allocate funds for starting work on at least one big dam to generate cheap hydel power for agriculture and industry. Rate of mark-up on export finance and industrial loans should also be reduced to facilitate industrial growth, he added.
He said exports registered declines across the board due to both supply and demand side factors. On the supply side, structural impediments in commodity producing sector, higher cost of production, low level skill and uncompetitive ness also hurt exports. Investment in exporting sectors remained low, as cut-throat competition with countries, like Vietnam and Bangladesh, is giving tough time to Pakistan's exporters, he opined.

Copyright Business Recorder, 2016

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