‘PTI govt must take private sector on board to meet economic challenges’

KARACHI: The new PTI government, led by the firebrand Prime Minister Imran Khan, should be more open to suggestions from private sector to wriggle the economy out of rigmarole that threatens its decade-high growth track, businessmen and analysts said on Saturday.

“We are to increase exports… they need to act upon way-outs suggested by us,” said Ghazanfar Bilour, president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).

Karachi Chamber of Commerce and Industry (KCCI) President Muffasar Malik threw his weight behind an advice of taking businessmen into confidence to resolve economic problems.

“They should base their decisions on the suggestions from stakeholders instead of bureaucrats,” Malik said.

SAARC Chamber of Commerce and Industry (Saarc CCI) Senior Vice President Iftikhar Ali Malik expressed the hope the PTI government would follow the guidelines by the business community for launching economic and business policies.

The economy that grew to nearly six percent last year is threatened by deteriorating external account position. Current account deficit widened to $18 billion

during the last fiscal year, burdened by $37 billion of trade deficit.

Ehsan Malik, chairman of Pakistan Business Council (PBC) underscored the need “to fix the economy instead of just economic management”.

“It needs to strengthen measures taken by the previous government in the short-term,” Malik said.

He said the new government planned a council of business leaders to come up with the solutions to arrest the economic woes.

Businessmen said the economic team should be strong enough to tackle the challenges head-on.

They said the government seems to take assistance from advisers to compensate its weak economic team. It had already announced veteran economist Ishrat Husain and Razaq Dawood who has served as commerce minister as advisers.

Bilour said business community has been frequently urging the policymakers in meetings to take businessmen in confidence over the China-Pakistan free trade agreement.

“We should be cognizant of what’s going on,” the president of the country’s apex trade body bemoaned.

Malik of PBC said Pakistan made a mistake in 2006 when the country signed bilateral free trade agreement with China, as it failed to put a condition that it would be granted tariff concessions similar to what would be granted by China to its other trade partners.

China gives better tariff concessions to the Association of Southeast Asian Nations members, Australia and New Zealand than to Pakistan.

“We should conclude renegotiation of China-Pakistan FTA (free trade agreement) on the same line,” he said. “China should see itself as a big brother.”

He said imports of finished goods from China should be curtailed to protect and develop local industrial base.

Malik of SCCI said the industry in the country is facing energy crisis and the newly-elected party should take steps to ensure uninterrupted supply of electricity and gas for sustainable economic growth.

Iftikhar said PTI should prioritise war against corruption and take stern actions against those involved in mega scandal without any discrimination.

“The government should extend the existing amnesty scheme and provide more facilities to oversee Pakistanis convincing them to transfer assets to Pakistan,” he said in a statement.

Malik hoped that Imran Khan would take measures to boost Pakistan-India bilateral trade.

He said Pakistan should “think strategically, not emotionally on trade issues” and create competition on items being imported from other countries, especially from China.

Malik said imports are increasing more than exports and recently the country

has started importing items that were never imported before.

“India’s exports to Pakistan have reduced 19 percent whereas Pakistani exports to India have also witnessed a cut of nine percent this year,” he said. “Removing barriers in Pakistan-India trade will boost growth rate immediately and have a modest impact on the economy.”