HYDERABAD: President Hyderabad Chamber of Small Traders & Small Industry (HCSTSI) Muhammad Farooq Shaikhani highlighted that 2023 was a tumultuous year for Pakistan, largely attributed to the significant surge in electricity and gas prices following the stringent directives of the International Monetary Fund (IMF).
He emphasized that compared to India, Bangladesh, and Vietnam, Pakistan faces nearly double the electricity and gas costs, presenting a challenging barrier for the country’s industries to enhance production and bolster exports. He emphasized that the industrial sector finds itself mired in challenges exacerbated by the lack of government cooperation.
Despite this substantial amounts of funds are directed toward subsidizing electricity for the public resulting in a drain on resources. There’s a pressing need for a mechanism that not only alleviates the burden on the public but also extends relief to the industry ensuring a balanced and equitable approach.
President Farooq Shaikhani emphasized that solely banking on foreign investment while sidelining domestic investment wouldn’t foster economic stability. He stressed that foreign investors tend to follow the lead of local investors, highlighting that countries where local investors are not provided adequate facilities, seldom attract foreign investment.
Therefore, nurturing and supporting domestic investors is pivotal to attract foreign investment and stabilize the economy.
He stressed the importance of stabilizing the economy to attract fresh domestic and foreign investments. Highlighting that, the foremost prerequisite for economic stability is ensuring political stability within the country. This foundational stability paves the way for a conducive environment where investments can thrive and flourish.
He emphasized the impending arrival of the newly elected government in 2024, foreseeing numerous challenges ahead in enhancing the economy. To effectively address these challenges, he advocated prioritizing the continuity of economic policies to spur fresh investments.
Emphasizing the significance of thorough examination and consultation with stakeholders, a comprehensive, long-term investment policy must be crafted. Crucially, this policy should garner broad political consensus, undergo scrutiny and approval from all institutions and the Cabinet, ensuring legal protection and alignment with established structures without encountering objections.
He highlighted the misconception of prioritizing foreign investment over local investors, pointing out a significant trust gap between business community and policymakers. Addressing this trust deficit is crucial as the state often views investors as rent seekers, necessitating a shift in mindset to cultivate trust.
HCSTSI President emphasized that the nation’s challenges require collaborative efforts from the state, government, and private sector. External solutions won’t suffice; the focus must be on domestic initiatives for growth, job creation, and boosting exports.
He cautioned against dwelling solely on past mistakes, urging forward-looking strategies to avert a potential worsening situation in Pakistan. With prevalent inflation, soaring interest rates, and escalating unemployment, he stressed the imperative for economic improvement and self-reliance.
Lamenting the lack of consistent policies or visionary leadership over the past 15 to 17 years, he underscored the need for resolute decision-making to navigate tough times.
Highlighting the substantial liquidity in the private sector, he proposed leveraging this capital through comprehensive privatization initiatives across institutions.
Privatization, he argued, could fortify the economy; attract investments, and foster joint ventures between the private sector and foreign investors, stimulating economic activity.
President Farooq Shaikhani stressed the urgency for prudent decisions, emphasizing that Pakistan cannot afford further delays. The imperative now lies in making sound, timely decisions to steer the country toward a robust economic trajectory.
Copyright Business Recorder, 2024