To avoid industrial destruction, Government restore supply of gas to the industrial sector: Mian Zahid Hussain

KARACHI – Businessmen Panel Pakistan’s Senior Vice Chairman and Former Provincial Minister Sindh, Mian Zahid Hussain and Presidential candidate of BMP, Former Chief Minister Balochistan Allauddin Marri while talking to the business community said that in the backdrop of uncertain economic outlook of the Country, Moody’s the New York-based international credit rating agency has reaffirmed B-3 negative rating of Pakistan and declared it as an uncompetitive country in the global perspective. According to the report, the increasing current account deficit has reduced the foreign exchange reserves which cannot be restored to stability unless capital inflows get increased in the short run.

Leaders of the Businessmen Panel said that the current debts of the Country has been accumulated to 72 percent of the real GDP which is higher than the median 52 percent; it is expected that the debt burden may further rise to 76 percent in the fiscal year 2020.

BMP Leaders said that despite all these challenges, the country’s long term economic prospects have been considered as robust, due to the development work carried out in the fields of energy, infrastructure and national security especially under the CPEC which is helpful for Pakistan to deal with the growth potential and economic challenges being faced. If the PTI led government successfully implemented the organizational reforms policies, the state institutions will be strengthen, State Bank will be more autonomous and the fiscal policies will effectively led Pakistan to prosperity.

Mian Zahid Hussain said that in addition to policy making and institutional reforms, the government needs to implement its initiative in true letter and spirit. The gas closure to industrial sector is a destructive measure, which if not resolved at the earliest may damage the industrial sector severely. Scarcity in the local industrial production will lead the country to higher reliance on imports thus inflation will further increase. The government to restore instant supply of gas to the industrial sector and both electricity and gas should be provided on competitive prices as of the regional countries, delay in restoring utilities to industries is a serious threat to the national economy.

Allauddin Marri said that the inflation rate as per the state bank for October 2018 was recorded as 6.8 percent which is further on rise. Market indicators predict that it will reach to double digit in the coming months. USD has risen by Rs. 18 in the five months of current fiscal year, which has increased the debt burden by Rs. 54 billion. The uncertain stock market situation is troublesome for the investors shaking their confidence. In first week of December KSE has dropped by 2100 points causing billions of losses to investors. All these facts need to be considered and early remedy should be provided so that investors and the business community may take sigh of relief and the economy get on the right track.