-Say flood damage ten times more than IMF loan
\nKARACHI
\nChairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Friday said the flood damage is ten times more than the IMF loan, but this time IMF is not ready to make any kind of concession.
\nIMF is not in a mood to extend any help but it is determined to get its strict conditions imposed due to the trust deficit, he said. Mian Zahid Hussain said that adherence to the IMF conditions will be a challenge for the government, while the non-cooperation of the two provinces may increase the difficulties.
\nTalking to the business community, the veteran business leader said that despite difficulties, Prime Minister Mian Shahbaz Sharif has announced the abolition of fuel adjustment charges on those who consume up to 300 units of electricity per month, which is welcome.
\nThe government should also consider increasing the direct subsidy of Rs2,000 per month to Rs3,000 per month, he said. The business leader said that there will be an enormous drop in demand because of floods, which will have the biggest impact on automakers, the tractor industry and steel manufacturers.
\nThe impact will also be felt gradually by the other sectors as well. Initially, the construction industry will suffer a lot, but with the start of reconstruction, this industry will start to recover.
\nAccording to the IMF, Pakistan\u2019s growth rate is expected to be three and a half percent this year, while inflation is expected to remain at twenty percent.
\nThe flood has swept away over five thousand kilometres of roads, bridges, small dams and railway lines, the restoration of which is impossible without foreign investment in the current economic conditions, he observed.
\nMian Zahid Hussain said that because of the destruction of the roads, companies are facing great difficulties in transporting their products from one place to another, which is affecting the overall situation.
\nAgriculture is the first sector to be affected by the floods, after which big industries have suffered, but small industries, general businesses and services will not be spared.
\nMian Zahid Hussain added that during the outbreak of the Coronavirus, developed countries and international institutions gave trillions of dollars in aid to large multinational companies, which increased the capital in the market resulting in inflation.
\nThe whole world is suffering for years due to inflation therefore, these institutions have become cautious.<\/p>\n","protected":false},"excerpt":{"rendered":"
-Say flood damage ten times more than IMF loan KARACHI Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Friday said the flood damage is ten times more than the IMF loan, but this time IMF is not ready […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-281205","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n