Jang Economic Session: Growth linked to political stability

LAHORE: Economic stability is impossible without political stability while situation is worsening in the country with every passing day and it has captured everything due to which poverty and unemployment are reaching alarming stage. 

These views were expressed by the experts in Jang Economic Session on ‘Instability impact on country image and economy’. The panellists were Zeeshan Khalil, Abdul Basit, Qayyum Nizami, Hussain Ahmed Sherazi, and Agha Saidain while the session was hosted by Sikandar Lodhi.

Zeeshan Khalil said that in current situation industrialists and traders are under pressure as cost of production is increased and discretionary powers of FBR officials and other issues have created trouble. He said internal politics and differences are not new things but need to adopt national interests. He said Brazil is the example of correlation of democracy and economy which increased its growth rate from 1.7 percent to 3.4 percent through election reforms so Pakistan should also learn from it. 

Abdul Basit said growing political tensions are negatively affecting economy. Unfortunately, rulers least bother about economic issues. He demanded the government to make politics-free economic policies and reprioritise the priorities. He said Malaysia gives 15 percent rebate on every type of exports and such steps should be initiated in Pakistan too. He suggested subsidy in diesel only instead of multiple subsidies to achieve the targets from it. 

Qayyum Nizami said governance system was adversely affected in the run of political and personal benefits while institutions are on decline due to instability. He called for discouraging the steps taken above the law and Constitution. He said delay in completion of projects is increasing the cost and achieving the targets from CPEC projects seems to be difficult in instability situation. He said social economic issues could not be resolved without effective taxation system. 

Hussain Ahmed Sherazi said country is passing through worst ever instability crisis which is reflected from economic indicators. He said revenue collection targets were not achieved last year while exports were declined to USD20 billion from 25 billion and foreign debt burdenincreased to USD85 billion and circular debt to Rs500 billion. He said Pakistan required USD19 billion for debt payment next year for which issuance of Euro and Sukuk bonds are being reconsidered.  

Agha Saidain said exports are declined to USD20 billion while global oil prices are fixed at USD47 from 110 so Pakistan can save USD10.36 billion from oil import during the last four years and no foreign loan and Sukuk bonds will be required, exports would be double and revenue collection increased. He said USD17 billion loans are taken for repayment of loans only. He suggested that the finance minister should consider the suggestions of exporters to increase exports and take steps on emergency basis for the revival of exports. He called for common economic agenda to end the political and economic instability in which electricity tariff should be reduced for exports and surcharges be ended. He called for adopting 30 years Korean economic plan to achieve better results.