Privatization is the only solution, PIA, Pakistan Steel,Railways are a burden on national exchequer :Hanif Gohar.

KARACHI (07-March, 2023): The country’s well-known businessman, former Senior Vice President FPCCI, former Chairman ABAD and Secretary General United Business Group (UBG) Sindh Hanif Gohar has sent his suggestions to the government and powerful circles to save Pakistan and Pakistan’s economy. He has said  in his proposals that PIA, Pakistan Steel and Pakistan Railways are a burden on the national treasury and the annual loss of all three institutions is so much that if they are privatized, the complex problems of Pakistan can be solved. Presenting a detailed review of the property of Pakistan Railways, he said that the Indian government has privatized its railways, which was purchased by the TATA group and now a visible improvement has been witnessed with a great deal of incentives.

If we do it, our national deficit will be reduced to a great extent. In January 2023, the current account deficit fell to 242 million dollars, which is the lowest level since March 2021. In addition, the main reason for the current account deficit, the imports in the country remained double compared to the domestic exports, last year there was a deficit of 20 billion dollars because exports and remittances were a total of 60 billion dollars compared to imports of 80 billion dollars and if remittances are excluded, the loss will be more than 40 billion dollars. He said that PIA, closed Pakistan Steel, Pakistan Railways should be sold through open auction and the money obtained from the privatization of these institutions will clear almost the entire debt of the country. Hanif Gohar said that Bundle Ireland, which is a good source of income but it was not worked on and it was sacrificed to politics, until the country’s liabilities are reduced, Pakistan will not be able to stand on its feet.

Appealing for Pakistan to get out of debt, he said that the only way to save the country at this time is immediate general elections across the country to end the uncertainty and until the country’s debts are paid, Pakistan can’t stand on its feet. Pakistan’s powerful and privileged class gets about 4250 billion rupees in concessions which include tax exemptions, subsidies on electricity and gas in industries, free petrol and plots. The poor should be given targeted subsidies for which the government has recently approved a mini-budget to collect additional taxes worth Rs 170 billion on the demand of the IMF. Hanif Gohar said that the State Bank of Pakistan has increased the interest rate by 300 basis points to 20%, which is the highest rate since 1996. Undoubtedly, the increase in this rate will increase inflation, while the current account deficit needs to be reduced. Hanif Gohar said that when the central bank itself indicates that inflation will increase in the next few months, which will remain up to 29%, then why the rulers not taking measures to reduce inflation and why there is no reduction in government expenditure. Hanif Gohar has said that the worrying thing is that the country’s debts and liabilities have reached the highest level in history.

Debts and liabilities have increased to 10 thousand 324 billion rupees, while in the last 9 months of the Pakistan Tehreek-e-Insaf (PTI) government, the debt and liabilities have increased to 5 thousand billion rupees. it is necessary that the government formulates an effective strategy to reduce the debt. He said that while criticizing the continuously increasing interest rate on the IMF’s indicators in Pakistan, he said that as long as the interest rate is concerned it will not rather it will increase  while on the other hand, the reason for the increasing rates of the dollar and its non-availability the LCs are not open for the import of raw materials the government should create factors that can increase domestic exports, because only when exports increase, dollars will also come into the country. It is better for the rulers to take action and instead of making statements; practical steps should be taken to get the people out of the mire of inflation in the country.