‘Economic condition deteriorating due to political instability’

LAHORE:The economic conditions in the country are deteriorating day by day due to political instability and unbalanced and unfair economic policies, causing industries closure and increase in unemployment while there is no focus on agriculture too.

These views were expressed by the speakers at Jang Economic Session on ‘New Inflation wave and IMF demands’. The panellists were Afnan Sadiq, Amina Ulfat, Sajida Mir, Abbadur Rehman and Jamshaid Iqbal Cheema while moderated by Sikindar Lodhi.

Afnan Sadiq said, “IMF was always held responsible here but it itself was not coming to give us loan. We are calling the IMF. The IMF gives us suggestions to bring financial discipline, improve the tax system. Pakistan’s future is in building dams or solar systems instead of producing electricity from imported fuels. There is a need to end blaming to save political stability and Pakistan. All political parties and stakeholders sit together and make a 20-year economic plan and anyone who disagrees with it should be punished.”

Amina Ulfat said finding solution to inflation is need of the hour. Privatisation of the loss-making state-owned companies is the only solution. PIA and railways have a loss of billions of dollars while the government put burden on 250 million people to save a few thousand employees of these institutions, he added. FBR reforms are crucial for broadening tax bases and taxation system. Every time a government increases tax burden on existing taxpayers against the IMF demand to increase tax base. The government should reduce its expenditure and contribute instead of burdening the public, he said.

Sajida Mir said politicians are fighting for power. “The expenses of the provinces are increasing and the people are worried about the increase in electricity and gas bills. Earlier loans were taken for development but now loans are taken for repayment the debt. We do not pay attention to agriculture while industries are closing down due to electricity cost. Now it is important that everyone should sit together and think about Pakistan.”

Abbadur Rehman said that no doubt that the economic condition was bad and getting worse day by day. “Agriculture can improve the country's economy but due to inflation it is not getting the output. The IMF is talking about imposing more taxes on agriculture which will increase inflation further and food will become more expensive. All businesses are losing money. Public purchasing power is reduced. Political stability is necessary to manage the economy which is not seen. The government did not make any satisfactory step for the public yet,” he added.

Jamshaid Iqbal said food and energy were vital for general public, but the prices of these two items were rising. Over 48 per cent population is living below the poverty line, while food inflation is down by 23.8 percent in the world but the situation is altogether different in Pakistan. The production of rice, wheat, pulses, sugarcane is continuously decreasing. Production in industry has been decreasing for three consecutive years. Level of poverty has increased. Public purchasing power has shrunk. The country's economy is going down due to political instability, he added.