KARACHI – President Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance and former provincial minister Mian Zahid Hussain on Wednesday said the economic situation is improving while inflation is climbing due to profiteering which should be tackled.
He said that real reforms in the tax and energy sectors can stabilize the economy and contain skyrocketing inflation.
Mian Zahid Hussain said that current account surplus for four months can be attributed to the efforts of the government as well as coronavirus which has dented demand while deprived importers of cash.
Talking to the business community, the veteran business leader said that exports and remittances are increasing but it could prove temporary while the industrial sector has started some activity.
He noted that FBR has shown a 23 percent increase in tax collection during the first month while demand for cement, building material, motorcycles, cars, tractors, and some other items have increased. Stock market is also buoyant and the real-estate sector is showing positive signs due to construction package, he added.
The veteran business leader noted that the IMF has also relaxed its conditions due to pandemic and it will again impose harsh conditions as soon as the situation improves which will reverse the gains. He said that now the food mafia has stopped taking notice of the threats frequently issued by the cabinet members and they continue to skin masses.
The government should introduce real reforms in the energy sector and abstain from repeating failed experiments while petroleum levy which is estimated to be Rs450 billion in the ongoing fiscal should be reversed to last year’s Rs260 billion to tame inflation. He said that the industrial sector is unable to pay Rs460 billion in the light of Supreme Court’s decision regarding GIDC, therefore, an acceptable solution should be provided otherwise, this sector will collapse.
