President of Pakistan Asif Ali Zardari has said that role of business community is crucial for the progress & prosperity of the country and they should help the government to achieve the economic goals. He said that our Government is taking long-term, mid-term and short term measures to bring the economy back on rail.
He was speaking at the Annual Goodwill Dinner in honor of Foreign Ambassadors in Pakistan. The Prime Minister of Pakistan Yousaf Raza Gilani was the guest of honor. The LCCI President Irfan Qaiser Sheikh, Senior Vice President Kashif Younis Meher and Vice President Saeeda Nazar also addressed the most high-level gathering while the LCCI former presidents Mian Mohammad Ashraf, Mian Anjum Nisar, Shahid Hassan Sheikh, Mian Misbahur Rehman, Iftikhar Ali Malik, Sheikh Mohammad Asif, Mian Shafqat Ali, Senator Zafar Iqbal Chaudhry, Convener Standing Committee on Diplomatic, Foreign Missions Mian Tariq Rehman and former EC member Mohammad Haroon were prominent amongst the others. As many as 50 ambassadors & diplomats and Federal ministers graced the prestigious function of the LCCI.
The President of Pakistan while highlighting the contribution of the Industrialists pointed out that Pakistan’s entrepreneurs ensured the economic viability of the state that inherited negligible industrial base at the time of independence. He said that the accelerated growth has been achieved with the cooperation of business community. The government is availing the assistance of private sector under public-private ventures. He appreciated the Lahore Chamber of Commerce & Industry, particularly, the LCCI President Irfan Qaiser Sheikh, Senior Vice President Kashif Younis Meher and Vice President Saeeda Nazar for having constant liaison with foreign ambassadors and giving them update on economic situation.
Speaking on the occasion, the LCCI President Irfan Qaiser Sheikh appreciated the efforts of government in war on terror and in maintaining the law and order in the country. He said that the economy of Pakistan is suffering from the fatigue of the war on terrorism. He said that Pakistan has lost more than thirty four thousand lives while its economy has taken a hit of around 70 billion dollars. He said that Pakistan should be granted maximum market access on favorable terms so our businesses can create jobs and opportunities for people to be hopeful. While seeking the help of diplomats, the LCCI President said that Pakistan wants trade, not aid. Irfan Qaiser Sheikh said that mutual trade could be enhanced by exchanging trade delegations and organizing fairs and exhibitions.
For that matter, visa regime needs to be liberalized for the bona fide businessmen in order for them travel frequently. He said that business community believes in economic and trade diplomacy. Though granting the MFN status to India was a step in right direction opening trade with India should not be at the expense of industry in Pakistan. We can compete with Indian businesses if we have a level playing field. Our cost of doing business and production is much higher when compared with India or with other regional economies for that matter. He said that industry is facing a growing energy crisis especially in Punjab. Our Indian counterparts have better and cheaper supply of energy. Businesses in large cities of Punjab such as Lahore and Faisalabad got gas supplies for only 180 days last year. We got gas supply for only 35 days since December 25, 2011. Whereas there is no gas load management program for the industry in Karachi. Similarly the electricity load shedding in Lahore and Punjab has gone up to 10 hours a day, there is no load shedding of electricity for industry in Karachi.
The energy crisis is one of the key reasons behind low economic growth in Pakistan. We cannot overcome this energy crisis without depending on indigenous resources. Our energy mix is heavily dependent on oil and gas, accounting for almost 80% of primary energy supplies. We spent around 12 billion dollars on imports of oil last year. Whereas, our local energy potential is based on water, coal and alternative resources such as solar and wind. We can also harness responsible nuclear technology for meeting our future energy needs. He said that Potentially, we have the wherewithal to grow at around 7%. We have rich resource base, young population and locational advantages. We are situated in a high growth region. Neighboring India and China have seen economic growth over 7% and 10% respectively for the last two decades. Similarly, Bangladesh and Sri Lanka too have done well in expanding their economies.
But it seems that we are unable to grow according to our potential. This is simply because of the persistence of complex, long-standing and multi-dimensional policy, institutional and infrastructure bottlenecks. The LCCI President said that the Federal Budget 2012-13 is being prepared. This provides an opportunity to enhance facilitation for the private sector. I would make a few submissions with regards to the forthcoming federal budget which can boost the confidence of our business community.
Zardari, LCCI, foreign diplomats discuss all things fiscal over dinner
