Daily Times

The Federation of Pakistan Chambers of Commerce and Industry’s Businessmen Panel (BMP) has asked the government that its strategies should not only focus on short-term gains but also encompass a long-term vision for sustained progress, focusing the national economic agenda, giving priority to address the issues of trade and industry in consultation with the business community which is the key stakeholder.

FPCCI former president and Businessmen Panel (BMP) Chairman Mian Anjum Nisar observed emphasized that such transparency from the government is crucial for instilling confidence in the business community and investors, as Pakistan, with all its resources and opportunities, cannot afford to continue to muddle through economically due to political polarization.

FPCCI former president observed that Pakistan requires a political consensus on economic policy. Freeing the country from its economic calamities should not be a matter of party affiliation, but a common task for all political actors who want to see Pakistan flourish.

He observed that the country has had trouble raising enough money to cover its expenses. Due to the low tax-to-GDP ratio, borrowing and outside help are heavily relied upon to close the fiscal imbalance. There is a recurring budget deficit because the government spends more than it takes in. The national debt burden has risen, as a result, needing substantial financial resources for debt repayment. Both internal and external debt in Pakistan has been constantly rising.

He called upon the government to announce clear and robust economic strategies, as the country has stuck in low economic growth situation, where double-digit policy rate for the last few years has diminished capacity to increase domestic production, and exports, negatively impacting domestic resource mobilization.

Anjum Nisar said that the new government that comes into office will have its work sharply cut out as far as the economic challenges are concerned. Coming at the back of fast-unfolding climate change crisis and recent Covid pandemic that pushed millions into poverty with little fiscal capacity of government to provide anywhere near close to what was needed in stimulus spending. Then there is acute debt distress, and seriously high inflation at the back of global aggregate supply shock, and accentuated by a world of rising conflicts, mainly in Ukraine, and the Middle East.