Favouring shopkeepers above industrialists damaged economy
\n Islamabad
\nFormer President of the Islamabad Chamber of Commerce and Industry (ICCI), Dr. Shahid Rasheed Butt, on Sunday, said that the IMF loan of seven billion dollars would pave the way for other loans, which will temporarily save the country from bankruptcy.
\nIt is being claimed that this will be the last loan from the IMF, but the ground realities are different. Borrowing will continue even after this loan, as there seems no intention to change the damaging policies, he said.
\nShahid Rasheed Butt said in a statement issued here today that the country will remain indebted, and unrest, as well as unemployment, will continue to rise because of the wrong priorities of the policymakers.
\nThe business leader said that for rulers, importers have always remained more important than all other sectors, including the troubled export sector.
\nThis priority has doubled the volume of imports compared to exports. For decades, he observed, the interests of the shopkeepers have been put before everything else, including economic development, due to political reasons.
\nHe noted that promoting imports and supporting shopkeepers have left the industrial sector in limbo and triggered deindustrialization in a country with a rapidly increasing population.
\nHe said that keeping the shopkeepers happy at any cost will continue in the future. A new mini-budget is also being introduced to appease the IMF, which will cause hardships to the public, the industrial sector, and the taxpayers, but traders would be spared.
\nHe feared that 700 billion rupees would be squeezed from the taxpayers through the mini-budget due to the incompetence of the tax-collecting institutions.
\nShahid Rashid Butt said that business activities will not be restored by a two percent reduction in the interest rate, and in case of a further cut, inflation will increase.
\nHe said that internal and external debt, unaffordable pension debt, and financial mismanagement in the energy sector have peaked.
\nHe observed that due to the favoritism of the landlords toward the shopkeepers, no government is prepared to take the tough decisions necessary to revive the economy, which greatly increases the burden on the industrial sector.
\nThe authorities always prefer to ignore the signals from the economy and do not take the right actions at the right time because they choose to be engaged in internal politics.
\nPoliticians prefer shopkeepers for the sake of votes, which has paralyzed the industry; now, Pakistan imports goods worth two dollars compared to every dollar earned and relies heavily on remittances, leaving little room for sustainable growth.
\nHe said that Pakistan continues to face comprehensive structural challenges. Government debt is rising, the rupee is losing value, inflation is high, and foreign exchange reserves are short. A significant share of government revenue has to be used to repay loans.
\nThe tax ratio is meager even by regional standards because the masses must trust the tax collectors. This means the government needs more financial scope to invest sufficiently in vital social services. To give the young population adequate job prospects and opportunities for participation, Pakistan\u2019s economy would need to grow by a minimum of seven percent a year.
\nPakistan has significant economic potential, including abundant resources, low labor costs, a young population, and a growing middle class, but this potential has never been tapped.
\nDue to the rulers\u2019 failure, the people have been driven into deep despair, the youth are fleeing the country, and popular discontent is manifesting itself in political instability, destabilizing the country\u2019s political landscape, he warned.<\/p>\n","protected":false},"excerpt":{"rendered":"
Favouring shopkeepers above industrialists damaged economy Islamabad Former President of the Islamabad Chamber of Commerce and Industry (ICCI), Dr. Shahid Rasheed Butt, on Sunday, said that the IMF loan of seven billion dollars would pave the way for other loans, which will temporarily save the country from bankruptcy. It is being claimed that this will […]<\/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-431474","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n