January 20, 2016
President Pakistan Businessmen and Intellectuals Forum (PBIF), All Karachi Industrial Alliance, Former Provincial Minister of Information Technology and First Vice Chairman of the Businessmen Panel (BMP) of FPCCI, Mian Zahid Hussain said that Pakistan has made significant progress in the Economic front to minimize short-term millstone, while medium to long-term stringency still remains a key challenge.
Mian Zahid Hussain stated that due to sagacious strategies of Financial and Monetary Sector in recent years, GDP has increased from 3.7% to 4.2%, Budget Deficit has decreased from 8.4% to 5.4% and Circular Debt of Power Sector reduced to Rs.313 billion from Rs.480 billion in FY2014-15 as compared to FY 2012-13. These positive signs of the improvements of the economy’s internal indicators are bolstered by additional revenue generated from inaugurating impact of internationally low prices of commodities and reduction in power subsidies.
The Former Provincial Minister stated that Repatriated Foreign Direct Investment (FDI) and head-first exports declined compelled Pakistan away from availing benefit of low oil prices and strong remittance. He disturbingly stated that exports reached to US$ 10.23 billion in Dec-15 from US$ 12.55 billion in Dec-13. Current account deficit have shrunk to 1% of GDP and now, Foreign Exchange Reserves have the capacity to pay import bill of 3.8 months in FY2014-15 as compared to 1.5 months in FY2012-2013, he added. He reiterates Govt. to address Medium-term issues that are still unanswered, by promoting FDI and Exports.
The First Chairman of BMP proposed Govt. to privatize all bleeding State Owned Entities to plug-in fiscal slippages, reduce reliance from domestic financing so private sector may have access to credit and to reform laws related to energy thieves/losses so energy sector could become self-sustainable, promoting growth within the economy.