KARACHI: Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain said that Middle East tension posed a risk to the recovery of the global economy.

The superpowers must resolve the problem without delay, he added.

He said that an increasing number of people are losing faith in the global political system, which should be noticed.

He said that the shipping sector was already affected by Yemeni militants, and business costs had increased.

Now the whole Middle East is in the grip of problems. If tension was allowed to escalate, oil and gas prices will skyrocket; affecting all oil and gas-importing countries, and their people will have to bear the brunt of further inflation.

He said that there is anxiety in the whole world due to the Israeli aggression and its undue support by Western countries. People are protesting, and their confidence in the international system is badly affected, he added.

In these circumstances, the superpowers must take steps to normalise the situation and prevent Israel from committing further atrocities in Gaza; otherwise, militancy will flourish.

Mian Zahid Hussain said that the policymakers in Pakistan should also monitor the situation and plan to protect the people from the possible effects of this tension.

The people in Pakistan are already very worried about inflation and unemployment and are not able to bear any more burden, he said.

He further said that the lives of the poor people were already tough, and now the government has increased the prices of petroleum products, which has added to their problems.

The government is already collecting a levy of Rs 60 per litre on petrol and diesel, and a tax of around Rs 82 is also being collected. Due to the increase in oil prices, the purchasing power of the people is further reduced, while transportation has become more expensive. To give relief to the people who are worried about inflation, the losses should be eliminated in the electricity and gas sectors by reforming them.

Failing government institutions should be privatised immediately to save around eight billion dollars annually, he demanded.

A good wheat crop has resulted in reduced prices of flour and bread and a reduction in the price has been notified, which is welcome, he said.

Copyright Business Recorder, 2024