(October-26-2023)
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 Thursday that the global crisis of oil, gas, and capital is arising due to the war between Hamas and Israel.
The human tragedy of Israeli attacks in Gaza is engulfing the world. As a result of this crisis, developing countries will be badly affected, and their central banks will be forced to increase interest rates.
Mian Zahid Hussain said that the global economy was not in good shape and that the recent conflict would damage it and cause the world economy to shrink rapidly.
Talking to the business community, the veteran business leader said that at present there is a shortage of capital in dozens of countries, while the financial condition of international institutions is also not good, due to which they are not in a position to give more loans.
On the other hand, the prices of oil and gas in the international market have started to increase and if Hezbollah joins the war the situation will become more alarming.
Mian Zahid Hussain further said that the price of natural gas in Pakistan has increased by 194%, after which OGRA has increased the price of LNG by 3.87% because its price has increased in the global market.
These increases will push up inflation in Pakistan. It is natural for LNG to be expensive in winter, but because of the war, there is a strong possibility that the price will increase more than usual, he observed.
In the current situation, it seems that the worst inflation will be imposed on the people of many countries, while it will be difficult for the people to live in countries where playing with the economy, exaggerating about development and politics of non-issues are the norm.
He said that in many countries, businesses will close, unemployment will rise to alarming levels and the economy will suffer.
Mian Zahid Hussain added that as a result of the global crisis, the value of the currencies of many countries will fall. In Pakistan, where the value of the dollar was increased by illegal methods, the situation can also deteriorate.
Smuggling and hoarding were controlled in Pakistan by state determination, but the situation could deteriorate again, taking a toll on the economy and the masses.
Rulers should make a strategy according to the situation and take measures to save the economy because if the economic situation worsens, the people will be affected, and they don’t have the strength to bear any more inflation.
