SAARC Chamber's Senior Vice President Iftikhar Ali Malik said on Friday that with the term of the present government coming to an end, Pakistan is facing a huge economic crisis due to the prolonged political turmoil, absence of viable business oriented policies, which may lead the country to an economic catastrophe.
Talking to a delegation of city traders here, Malik said if the proper steps are not taken immediately to end political instability in Pakistan, he feared that more of 70 percent business would be collapsed. He said in the last 13 years, Pakistan has experienced both war and political quagmire, including assassinations, bombings, sit-ins, demonstrations, violence and armed clashes.
He said that political instability, below the mark foreign direct investment, high cost of doing business, politics on mega projects like Kalabagh Dam, unemployment rising, millions slipping below poverty line, women and children dying in stampedes for a few kilogram of flour, exchange rate depreciating, fuelling inflation and contributing to the surge in public debt have led to stagnant growth in Pakistan.
He said Pakistan also saw its relations with international financial institutions deteriorating, the friends of Pakistan showing reluctance in providing financial support and hence overall balance of payment turning negative, foreign investors losing confidence in Pakistan's economy and economic managers with consequent nose-diving of foreign investment.
Iftikhar Malik said it is strange that the incumbent government, claiming to have a strong majority in parliament, has miserably failed to create political stability coupled with sound economy in the country.
"People within and outside the country had a lot of expectations about political stability, strengthening of democracy, rule of law and respect for judiciary," he added.
He said though incidents of terrorism were on peak during 2001 to 2008 nevertheless economic growth during the same period was remarkable. The economic growth has always been disturbed by political crisis in the country. He said sustained political set up is crucial to boost foreign investors' trust. He said all political differences should be set aside from economic agenda.
Malik said Pakistan must have to address these issues through good economic reforms. Pakistan has all resources to become an economic giant but only need is to set directions with zeal, courage and sincerity. He said that Pakistan's huge mineral resources can help get rid of the economic ills, particularly external debts of over $ 91 billion, within next five years, he added.
According to a rough estimate, value of coal reserves in Pakistan is 187 times more than the GDP of Pakistan and only 2 percent of Pakistani coal reserves can generate 20,000 MW of electricity for almost 50 years. In addition to copper and coal, the country has vast reserves of precious stones, gypsum, salt and marble but instead of taking full advantage of these resources most of the share being exported in raw form.
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