LAHORE – Former LCCI Senior Vice President Abdul Basit has urged the government to immediately constitute economic reforms committee with representation of stakeholders, including chambers of commerce and industry, trade bodies and political parties to urgently take up the challenges hampering the economic growth.
In a statement issued here on Tuesday, former LCCI SVP said that economic slowdown was not only causing unemployment but also creating law and order situation in the country. The government would have to evolve a well thought-out strategy to cope with the situation.
He said that a number of industrialists had been shifted their industrial units to other countries owing to worst energy crisis, political instability, deteriorating law and order situation and economic meltdown, while reportedly a large number of industrialists were also planning to shift their industrial operations to other countries because of unavailability of a conducive business atmosphere in Pakistan.
He said that not only the developed world but several countries of the region are on the path of rapid growth while situation in the Pakistan was quite different. He said that in the year 2003, industrial growth rate was 2.49 percent that reached 13.10 percent in year 2005 but in the year 2010, negative growth rate was registered with -3-60 percent.
Abdul Basit feared that the fiscal deficit could touch the staggering figure of Rs 1.2 trillion (about eight percent of the GDP) if the situation remained the same for quite some time and resultantly the government would have to print billions of rupees that would trigger hyperinflation.
Former LCCI SVP said that an efficient handling of issues at hand would be a great national service and it was not the industrialists that are disturbed but the people at large are also feeling the heat. He said that an immediate attention on the part of the government was required to overcome the energy shortage that was the biggest hurdle in the way of economic growth.
“Only because of electricity shortage, not only the business community is losing foreign orders but the goods are fast becoming uncompetitive.” Abdul Basit, who is also a former Chairman of Pakistan Poultry Association, said that the government would also have to activate Pakistani mission abroad to make Pakistani merchandise familiar in the international market.
He urged the government to work on war footing otherwise Pakistan would become only a trading place instead of manufacturing hub.
