(December-20-2023) Chairman of National Business Group Pakistan, President Pakistan Businessmen and
Intellectuals Forum, and All Karachi Industrial Alliance and former provincial minister
Mian Zahid Hussain said on Wednesday that the unpopular and harsh decisions of the
government and the central bank have made life very difficult for the people and the
business community.
However, these decisions helped restore the confidence of international institutions, while
the pressure on foreign exchange reserves, the rupee has eased and the current account
deficit has come down, he said.
Mian Zahid Hussain said that a surplus of nine million dollars in the current account in
November is a good development. This achievement was made possible due to the tight
monetary policy, which reduced demand.
Talking to the business community, the veteran business leader said that in addition to the
central bank’s initiatives, imports were also controlled, which positively impacted foreign
exchange reserves and proved that the country could survive in the absence or lack of
many imports.
Mian Zahid Hussain further said that the current account deficit for the first five months
of this year is $1.16 billion, which was $3.26 billion in the first five months of last year.
This deficit reduction is a great achievement, and if there is no indiscriminate increase in
spending after the election, the annual deficit will not exceed four and a half billion
dollars, which will be a great success for policymakers.
The business leader said that a strict policy is also necessary because, despite the IMF
program, the expected capital is not coming to the country.
Apart from this, remittances are decreasing, while the situation of exports is also not
satisfactory due to an increase in production costs.
After possible foreign investment under SIFC, the central bank may consider easing
monetary policy while easing imports, but this is not an immediate possibility, he
observed.
Mian Zahid Hussain further said that economic growth has stopped due to measures to
reduce the current account deficit. The business environment has been affected, and new
employment opportunities are not being created. Administrative measures have improved
the economy, but this is not a long-term solution.
He said that to stabilize the economy, exports must be increased, and the reasons for the
decrease in remittances must be known, and the confidence of the people living abroad
must be restored.
Apart from this, there should be a crackdown on the handi business so that the
remittances come into the country legally. Mian Zahid Hussain further said that along
with administrative measures, reforms, the sale of failed government institutions,
reductions in oil, gas, and electricity prices, better incentives to investors, and the
elimination of terrorism are also necessary.
He said that agricultural and industrial production needs to be increased by paying special
attention. In contrast, political stability needs to be given attention, without which
investment will remain a dream and policymakers will continue to try to save the
economy instead of growing it.
