Jang Economic Session: Call to evolve effective strategy to control inflation

LAHORE : Economic problems are increasing due to Afghan situation. Monetary instability is growing. Some segments believe that dollar is soaring and prices of petroleum will further increase.

These views were expressed by the speakers at Jang Economic Session on ‘rise in petroleum prices - negative impact on economy - what will be solution?’ The panellists were Abdul Basit, Abdul Basit Khan, Siddque-ur-Rehman Rana and Muhammad Yaqoob while the session was moderated by Sikindar Lodhi. Abdul Basit said an increase in petroleum prices would have effects on food transportation and daily use items. Growing inflation will further increase people’s problems. The government should take steps to control prices. Non-industrialisation is the major reason for growing problems. There is need for business promotion, especially industrialisation. The government should make a commission to investigate growing entrepreneurship. It should increase duties on luxury items to discouraged imports, Abdul Basit said.

Abdul Basit Khan said pressure on economy was not new. Pakistan’s economy was always in problems while instability in exchange rate may ensue crisis. The government should realise these problems and evolved implementable strategy.

The public and government got relief in past from lower international petroleum prices. Now it is on growing trend after Covid-19 recovery. The prices of petroleum will further increase and adversely impact the domestic economy. The US increased economic problems for Pakistan due to Afghanistan situation. It seems world financial institutions and Gulf countries can bailout Pakistan on the US instructions. The government should review its foreign policy, Abdul Basit Khan said.

Siddque-ur-Rehman Rana said national income was not increasing. Economic activities should be increased alongside practical steps to expand tax net. More than 60 per cent of population in Pakistan is living below the poverty line which could increase if effective relief policy is not made, he said and suggested focus on SME sector to provide better opportunities to the youth while indirect taxes burden on should be reduced. Muhammad Yaqoob said due to lack of effective economic strategy, socio-economic issues have become critical while exchange rate is out of control. Lack of good governance and a weak control on institutions are the issues which need to be addressed.

It seems control of international financial institution on the present government is greater than the past. The trade imbalance caused $15 billion gap, he said.