People and capital fleeing, friendly countries are distrustful
Very few options left for national survival; elites should be taxed
Govt should consider nationalising IPPs and suspend repayments to banks
Former President of the Islamabad Chamber of Commerce and Industry (ICCI), Dr. Shahid Rasheed Butt, said on Friday that Pakistan finds itself in a precarious situation with its mounting debt burden.
He added that due to the discouraging economic indicators, educated people are leaving the country, and capital is also flowing out. In contrast, friendly countries are hesitant to trust Pakistan.
Shahid Rasheed Butt said that limited choices remain for the survival of our country, and the elite members of society must contribute their fair share through taxation.
In a statement issued today, the business leader said the government should consider suspending paying back bank loans and interest repayments and consider the nationalisation of IPPs.
He said that presently, we need loans to run day-to-day affairs, and expenses and salaries are also paid with loans.
Highly educated people and capital are fleeing the country, and no friendly country is willing to trust Pakistan and invest here, he said.
If the elites are still not forced to fulfil their national responsibility, the country will be bankrupt any time soon.
Shahid Rasheed Butt said that Pakistan has few options left as the debt has reached 79 trillion rupees, of which more than 43 trillion is local and 33 trillion from foreign debt.
The interest rate is also fixed at 22%, which affects people and businesses. The government has to pay high interest on loans and has no intention of cutting expenditures.
He said that in these circumstances, it is not possible to nurture the failed government institutions, which are wasting trillions of rupees annually at the country’s cost.
He observed that supporting the elite, who have not been paying taxes since the country’s formation, is no longer possible.
Now, elites should also be taxed to save the country from bankruptcy. Banks in Pakistan are not interested in supporting the masses and promoting businesses.
Banks are only interested in making profits, which has made it the most profitable sector at the cost of the economy.
He said that economic conditions could improve if the government stops loan and interest payments to banks for one year as they have been earning billions for a long time.
In addition, the loss of power and gas sectors should be reduced by stopping free energy supply to the influential.
He said that IPP owners are ruining the country’s economy for their own profit. Contracts with IPPs should not be renewed, and if they do not agree to reduce their rates, then the nationalisation of these units should be considered.
