LAHORE: President of Pakistan Business Forum (PBF), Mian Usman Zulfiqar on Sunday says government is likely to meet all IMF demands to revive loan programme and as a result of which new taxes would be imposed on the industry and masses; further depreciation of the currency which would further spike the inflation. It is feared that we may touch 30 percent annual inflation rate in the end of 2023.
He said “Pakistan should considering alternative options to tide over its economic crisis other than habitual option of IMF. Unfortunately Pakistan’s formula for economic growth is as flawed as it gets: borrow foreign currency-denominated loans, build some large-scale infrastructure, get a minor growth spurt in the process, and wait until this growth spurt fades so we can repeat the process again” he maintained.
He said “Our economic failure is a symptom of our collective political choices. Once we can allocate political power more fairly, we can make better economic outcomes.”
PBF President said it’s high time to lower Pakistan’s debt, ensure a stable currency and promote business-friendly policies for foreign and domestic investors and that could be possible if we fix our currency for a period of few years at the rate of Rs 200, only borrowing from commercial banks for government expenditures, enhance our tax collections and ensure accountability with no bail out further to state owned enterprises and surprisingly we have a vibrant agriculture sector who have a potential to contribute five percent GDP growth annually. Through this we could come from this ongoing economic meltdown. Similarly we should understand FDI will only be flourishing if you have a stable currency in order to determine the profitability for the foreign investors. But that could be possible if we signing charter of economy for at least 20 years including reviving our strategic relations with United States too”.
He also lamented we must also understand “Pakistan is no longer as important in the grand chess board of international politics as it used to be. Saudi Arabia and China didn’t rush to our help. The West pretty much ignored us, notwithstanding our delusions of being a nuclear power”.
PBF President further stressed to attain a balanced development in establishing united and fair society; it’s time to stress on to the growth with fair distribution enabling every Pakistani to participate in any principal economic activity for our prosperous future.
Copyright Business Recorder, 2023