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 massive imports of food and other items will stagnate the troubled economy.
He said that there are limits to inflation which is resulting in unemployment and reduced demand as masses are using a good part of their income on food and utility bills therefore they are unable to buy other things.
Mian Zahid Hussain said that the current account deficit will not allow the economy to develop therefore state-run enterprises should be sold or restructured while agriculture should be given full attention by improving supply and discouraging hoarding as there are slim chances of price reduction in the international market.
Talking to the business community, the veteran business leader said that international institutions helped poor countries during pandemic while supply chain disruption and shipping costs added to the inflation which increased the price of oil, metals and food items etc.
Now, the economic situation is improving in many countries and demands is picking up which has added to the inflation while rich nations are considering to limit or stop aid of developing nations which will stagnate the economy of such countries which also includes Pakistan.
IMF must release loans for developing nations while altering its policy of demand management otherwise a global economic crisis will spring in action.
IMF must suspend its quota system and lend money on the basis of need unless the global economy is fully recovered.
He said that developed nations are spending billions and trillions to improve their economy while forcing poor nations to adopt austerity which is not only a recipe for disaster but the height of hypocrisy, he said.