Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain said on Friday that international organisations have been demanding reforms in Pakistan’s tax and energy sectors for the last several decades. The IMF and other lenders have been demanding reforms or the sale of the failed government institutions that are wasting 800 billion rupees annually, but they are always avoided; however, this time, it will not be possible, he said.
Mian Zahid Hussain said that due to delaying reforms to avoid political damage, the country’s economy has only been able to run with debt. If drastic measures are not taken, the economy will not be able to run even with loans.
Talking to the business community, the veteran business leader said that the former government pushed imports to $80 billion against $60 billion in revenue to boost the growth rate to six per cent, which was irresponsible.
The decision, which amounted to playing with the economy, resulted in a current account deficit of $20 billion, the effects of which will be felt for at least ten years.
The efforts aimed at cheap fame have made the country a beggar. He said that the artificial growth spurt led to dwindling foreign exchange reserves and high inflation, which resulted in increased taxes and interest rates and the devaluation of the currency.
The business leader said that while the development expenses had to be reduced to avoid default, borrowing from domestic and foreign sources started, and the interest on these loans has now increased from our national income.
Mian Zahid Hussain further said there is a need for real change in Pakistan; amnesty schemes, packages, and other shortcuts must be stopped.
He observed that policies aimed at shortcuts, increased costs of production, and a limited tax base have prevented the country from improving production and exports.
He said that the interim government will have to give top priority to implementing effective reforms to fix the damaged economy.