KARACHI – Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Monday said the costly dollar has not slowed the pace of imports which are threatening the economy by expanding deficit.
Controlling exports without compromising growth will be a challenge for the policymakers in which success is the only option, he said.
Mian Zahid Hussain said that government wants to boost the growth rate to 4.8 percent while ADB has projected the annual growth rate at 4 percent.
Talking to the business community, the veteran business leader said that the government inherited a trade deficit of 37.6 billion dollars which was controlled for some time but later policies were relaxed which resulted in threats for the economy and local currency.
The economic problems were increased due to food price hikes, hoarding and profiteering, he added.
The SBP increased interest rate to control increasing inflation which is hitting the economy but some elements in the business community were quick to get loans worth Ts172 billion before the policy rate hike which will also boost investment and employment.
Mian Zahid Hussain said that food imports during the first two months of the current fiscal were almost 1.5 billion dollars which were fifty percent more than the corresponding period.
Now, policymakers are mulling some steps to control imports which will be presented to the ECC soon for approval, he said, adding that the government has decided to reduce focus on the textile sector and improve exports of software, engineering products, marble, minerals, pharmaceuticals, beverages, processed food, gems, jewellery, chemical, meat, poultry and vegetables.
He said that the decision of the government to give a five percent tax rebate to the investors establishing engineering units is a good move however relaxations should be increased to bring the real potential of this sector to the limelight.
