The Chairman of National Business Group Pakistan, the President of the Pakistan Businessmen and Intellectuals Forum, the President of All Karachi Industrial Alliance, the Chairman of the FPCCI Advisory Board, and the President and former provincial minister, Mian Zahid Hussain, said on Wednesday that the possibility of a global recession is increasing due to a fundamental change in American policies.
He said that the effects of Trump’s policies in the previous era are still being felt. At the same time, his intentions seem more dangerous than before, which is worrying the whole world.
Mian Zahid Hussain said that developing countries like Pakistan must prepare to face these situations.
Talking to the business community, the veteran business leader said that Pakistan should accelerate the process of fundamental economic reforms so that it can face the expected recession. Tax cuts, deregulation, protectionism, and trade wars are the mainstays of President Trump’s policies, which are likely to benefit the US economy to some extent. However, he observed high chances of severe ups and downs in the global market.
Mian Zahid Hussain said that the US President has sounded the trumpet for a trade war with China, which may affect the global growth. Due to US trade sanctions on China, Pakistan’s access to US markets may increase.
The business leader said that Chinese investment in Pakistan may also increase because Pakistan has excellent trade relations with the US and China.
He noted that due to President Trump’s cold attitude towards Europe, Europe may extend a hand of friendship towards China, which has opened up the possibility of increasing China’s global influence.
President Trump also wants to reduce interest rates, which may create uncertainty in financial markets. In these circumstances, Pakistan should increase the number of its trade partners, explore new markets and products, and activate trade missions in Europe, Britain, Africa, the Middle East, Central Asia, and Southeast Asia, among other places.
In addition, he said, plans are needed to strengthen local industry, improve technology, and improve agriculture so that dependence on imports is reduced and people can find employment.
Mian Zahid Hussain said policymakers should control inflation, continue fiscal discipline, prevent debt from increasing further, and formulate monetary policy according to ground realities.
Electricity and gas should be made cheaper, and tax reforms should be considered to collect more revenue without increasing the burden on the poor.
He said that no one would ever like to come into the tax net because of how taxes are collected. Mian Zahid Hussain further said that infrastructure should be improved and attention should be paid to political stability to increase domestic and foreign investment.
He said cooperation with regional countries and substantial investment in human resources are also necessary to ensure economic development and avoid the expected effects of US policies.
