President Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain has said that business community is pinning high hopes on the recent meeting between Prime Minister Imran Khan and governor State Bank of Pakistan and they are positive about some remedial measures and relief.
He said economic activities are stagnant, industrial units are being closed, unemployment is rising while GDP has contracted from 5.8 percent to 2.7 percent which may slide further. Inflation is also incrreaing therefore interest rates should be reduced while steps should be taken to revive ailing SME and export sector, he said.
He said that despite best efforts by the government the economy could not be improved calling for urgent intervention. He noted that tax collection could not be improved while the gap between income and expenditure could not be bridged. Similarly, the difference between imports and exports remained high which is very damaging to the economy.
He noted that large scale manufacturing contracted by 3.6 percent, highest in a decade while serious efforts were not initiated to tame circular debt which has surpassed one trillion rupees. He said that budget deficit jumped to Rs 3.44 trillion or 8.9 percent of the GDP which is highest in the last 28 years. The budget deficit during 2017-18 was Rs 22 billion which was 6.6 percent of the GDP.
The government could not reduce expenditures despite claims and missed the deficit target by 82 percent or Rs 1.5 trillion, he said, adding that reduction of Rs 4 billion in developmental expenditure and tax measures failed to bring any positive change, therefore, the government should consider reservations of the business community and provide them some relief so that they can play their due role in national development.
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