KARACHI: Chairman of National Business Group Pakistan, the President of the Pakistan Businessmen and Intellectuals Forum, the President of All Karachi Industrial Alliance and Chairman of the FPCCI Advisory Board, Mian Zahid Hussain has warned that unless the losses of government institutions are reduced, government spending moderated, exports and tax bases increased, and other reforms are made, neither the country’s economy will develop nor will relief be provided to the people.

He further said that for many decades, whenever a country starts going bankrupt, the IMF saves it. Still, no government has ever tried to make fundamental reforms, so after every IMF programme the country starts going bankrupt again. Every government seems to say that it has found the country’s economy in a terrible condition and is trying to improve it, but real improvement is still a dream.

However, he said that economic stability has come to the country due to the government’s unpopular decisions. More steps must be taken to increase the growth rate, many of which will be politically difficult. He added that economic stability has been achieved, but more tough decisions are necessary for its development so that the people’s incomes increase and the unemployed get jobs.

He said that until the growth rate begins, it is not possible to increase the purchasing power of the people, which is a significant obstacle to national development. The risk of default has been averted, the deficit is under control, prices are not increasing daily, restrictions on imports have been eased somewhat, the rupee depreciation has stopped, and the condition of foreign exchange reserves is improving, which is very encouraging.

He said that the country has achieved economic stability due to its current policies, but the same policies will hinder the growth rate if an attempt is made to increase it. Such a move will trigger inflation and deplete forex reserves, as it has been experienced over a dozen times.

He noted that reforms must be intensified to ensure economic growth without jeopardizing the country’s slowing economy. Several vital sectors, including the power sector, are still losing trillions of rupees. To save 7500 jobs, PIA was allowed to lose trillions of rupees, which would have allowed thousands of hospitals and schools to be built. He observed that steel mills, railways, and other departments are the same.

Focusing on exports is also necessary because the textile sector alone cannot solve the country’s problems, and heavy subsidies are needed to run it.

Copyright Business Recorder, 2024