Islamabad, October 12, 2022 (PPI-OT):FPCCI’s Presidential candidate Atif Ikram Sheikh on Wednesday said Pakistan was temporarily saved from sinking into the economic quagmire but serious economic issues are present which should be resolved without further delay. He said that erroneous economic priorities and wrong decisions can push the country to bankruptcy sooner than expected therefore merit should be given priority.
Atif Ikram Sheikh who has also served as Chairman PVMA, VP FPCCI and President ICCI said that a solution to the current economic crisis is possible with political will. The lack of unity also hinders the resolution of the crisis, he said, adding that those who matter give priority to personal and political interests over the national interest and instead of expanding the economy they try to boost their vote bank.
Most important economic decisions are made on political grounds and without consulting the independent economist or the business community. Atif Ikram Sheikh warned that the loss of resources cannot last long because the economy is not strong and it cannot withstand more extravagance, bad decisions and poor governance.
Exports and remittances have always failed to fill the gap between imports leading to borrowing. The reasons for low export volume include inflated business costs, tax system, inconsistency in policies, poor governance, difficulties in starting a business and shortage of energy.
At present Pakistan has become a net importer of food items and we will have to import cotton worth billions of dollars, he observed. The business leader said that the losses of the power sector have reached six to seven hundred billion rupees, the circular debt of the electricity sector has reached two and a half trillion rupees, the circular debt of the gas sector has reached seven hundred billion rupees reforms have not been initiated.
Incompetence in the import of LNG caused the loss of billions of dollars but no one was held responsible while hundreds of billions of rupees are being wasted annually to keep state-owned corporations artificially alive. If non-developmental spending is reduced, agriculture is promoted, wastage is controlled and doing business becomes easy, then employment, production, exports and revenue will increase and we will not have to take out a loan on strict conditions.
For more information, contact:
Atif Ikram Sheikh
Ex. Chairman PVMA, Former VP, FPCCI,
Former President ICCI, Former President HCCI,
Tel: +92-51-4437597, 4440772
Fax: +92-51-4440773