Daily Times

Dr Mirza Ikhtiar Baig is a renowned industrialist; Honorary Consul General of Republic of Yemen in Pakistan; President Honorary Consular Corps Sindh, Karachi; and Director of the World Federation of Consuls Brussels.

The president of Pakistan has conferred upon Dr Baig the prestigious civil award, Tamgha-e-Imtiaz, in recognition of his contribution to national economy. The president of Yemen has awarded him a civil award, Order of Merit, in recognition of his contribution to enhance trade and investment between Yemen and Pakistan.

Dr Baig is the author of eight books on economy, and current national and international economic issues. His contribution to the economy of Pakistan is of immense importance. Muneezay Moeen (MM) conversed with him about bilateral relations of Pakistan and Yemen, and his views and suggestions to boost the economy of Pakistan.

MM: How do you see the bilateral relationship between Pakistan and Yemen?

Dr Baig: Yemen holds immense importance due to its geographical location. Yemen’s location is of strategic importance in the Gulf as it is the neighbour of Saudi Arabia. Pakistan and Yemen enjoy a good historic, brotherly relationship. There are about hundred Yemeni students studying in Pakistan in the field of medicine, engineering and B-pharmacy. Some of them are on scholarships of the government of Pakistan under a cultural exchange programme. They are the true ambassadors of Pakistan as when they go back to their country as doctors, they can be truly instrumental in improving medical tourism from Yemen to Pakistan.

MM: How has the exchange programmes enriched the culture of both countries?

Dr Baig: Yemen has a rich culture. Pakistan exports leather slippers and rice to Yemen. Our rice is used in the popular Yemeni cuisine, mandi. Yemen exports coffee and honey to Pakistan. It is unfortunate that these days Yemen is in a state of war. Pakistan has taken a position of a neutral ally and is trying to end the conflict by using its good relations with Saudi Arabia, Iran and the UAE.

MM: From an economic point of view, will it be good for Pakistan to invest in Yemen?

Dr Baig: The population of Yemen is 28.5 million, and its economy is comprising of 20 percent agriculture, 12 percent industry, and 68 percent of service sector. Yemen is a producer of oil and gas, and Pakistan’s state-owned companies, OGDC and PPL, have invested in oil blocks in Yemen. But due to Yemen’s civil war, not much progress has been made.

Yemen has a rich culture. Pakistan exports leather slippers and rice to Yemen. Our rice is used in the popular Yemeni cuisine, mandi. Yemen exports coffee and honey to Pakistan

MM: You were appointed as an advisor to prime minister on textile when Pakistan People’s Party was ruling. In terms of economic stability, which party’s tenure is favourable for Pakistan’s economy?

Dr Baig: I was the architect of the first ever national textile policy. It was the National Textile Strategy 2014-2019, and it announced incentives for the textile sector to boost exports. The policy was very successful, but after two years, due to financial constraints and funding, some of the features of the policy were not implemented. The PPP is a progressive national democratic party with a strong ideology; our government also faced challenges, but we had a competent mature team that carried out reforms that resulted in an economic revival. The PTI leadership has a good reputation and credibility but their team lacks dedication and maturity and is having problems of delivery to the masses. Most of their announcements are not based on ground realities, facts and figures and available resources. For example, PTI announced to give new jobs to one crore people and fifty thousand homes for homeless people without any roadmap and strategy to support the statement.

MM: In eighteen months, the government does not seem to have accomplished much economically. Why?

Dr Baig: Their team is working on adhocism with no roadmap, planning and strategy. It is true that the PTI government has inherited burdens from the previous [PML-N] government, which resulted in a deficit and a balance of payment crisis. The PTI government has had to knock at the door of IMF to secure a loan of six billion dollars under tough conditions. There has been devaluation of the Pak rupee, record increase of SBP discount rate, withdrawal of subsidies, imposition of new taxes, and increase in petrol prices. All these factors have jacked up inflation and dreariness in the country. It is hard for the common man to bear the record price hike. The inflation has reached a record high level of 14.5 percent. It is a difficult challenge for the PTI government to bring down inflation in the near future.

MM: What initiatives should the government of Pakistan take for stabilising the economy.

Dr Baig: The government must avoid economic and financial crises, large swings in economic activity, high inflation, and excessive volatility in foreign exchange and financial markets. Instability can increase uncertainty, discourage investment, impede economic growth, and hurt living standards. A dynamic market economy necessarily involves some degree of volatility as well as a gradual structural change. The challenge for policymakers is to minimise instability in their own country by increasing the economy’s ability to improve living standards through raising productivity, employment and sustainable growth. In the contemporary situation I must say that the mark-up rate should be lessened; otherwise, the economy will remain stagnant.

MM: Will PTI accomplish its manifesto?

Dr Baig: Prime Minister of Pakistan Imran Khan has declared 2020 the year of growth and job opportunities. Government has announced IT, tourism and low-cost housing their priority sectors to boost the economy, but it is not possible unless the SBP policy rates and banks’ lending rates are brought down to single digit. I am looking at 2020 as the year of challenges for the government. However, if the government succeeds in addressing the said economic issues and restore the confidence of the business community, 2020 will be the year of growth and prosperity.

The writer is a human rights activist, a blogger