KARACHI Chairman of National Business Group Pakistan, President of Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain said there have been few examples in the economic history of the country that the exchange rate is stable, inflation and interest rates are decreasing and the current account is in surplus.

He said the government deserves praise for its efforts to improve the economy, but much more should be done to ensure sustainable economic growth.

Mian Zahid Hussain said that efforts are needed to increase exports and remittances so that the debts can be cleared and the country can be put on its feet.

Talking to the business community, he said that we will have to pay the debts of US 100 billion dollars in the next four years.

To pay these debts, the government must allocate US 25 billion dollars annually, or US 2.08 billion dollars per month, in addition to the existing resources. He said the government can restructure the debts, increase exports, boost remittances, and enhance tax revenue.

He said that if income is not increased in these ways, more loans will have to be taken to repay the existing loans, which are becoming increasingly complex and expensive.

He observed that if things are not controlled now, it will be challenging to keep the exchange rate stable, resulting in economic instability that the country cannot afford at this point.

Mian Zahid Hussain explained that recently, to obtain loans from the IMF, the dollar had to be borrowed at very high commercial rates. This has increased the pressure on the entire system.

He said keeping the exchange rate constant will reduce import expanses and external debt. If exports and remittances cannot be increased enough, we must rely on foreign loans, rollovers, and loans to prevent the rupee from falling.

He noted that economic stability based on debt is temporary and increases suspicion, speculation, and uncertainty in the market.

Mian Zahid Hussain further said that for absolute economic stability, we must increase our income instead of borrowing; otherwise, things will start worsening soon.

He informed that in 2023, imports were US 53.2 billion dollars, and exports were US 30.1 billion dollars, which means there was a deficit of US 22.1 billion dollars. This is a big problem that can be resolved by focusing on sectors other than textiles.

Copyright Business Recorder, 2024