(July 04, 2022)
Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Monday said the whole world has been pushed into an economic crisis by the developed countries in an attempt to punish Russia.
The majority of the countries are in the race for energy security and food security, while other important issues have been left behind, he said.
Mian Zahid Hussain said that millions of people are falling below the poverty line and the number of insecure people is steadily rising.
Talking to the business community, the veteran business leader said that rising inflation has eroded the purchasing power of the people, hitting the demand for all commodities except food all over the world, which is wreaking havoc on the productive sector.
Mian Zahid Hussain said that dozens of countries were using the funds allocated for the welfare budget for the purchase of weapons, which was giving rise to human tragedy.
Many countries, including the United States, are on the brink of recession, with no prospect of an end to the war, nor have sanctions against Russia proved productive.
A recent report by JPMorgan says a new plan is being hatched to punish Russia, but if Russia, whose economic situation is much better at the moment, cuts its oil production by half a million barrels the price of oil will jump to $380 spelling a disaster.
According to the report, if Russia reduces the supply of oil by three million barrels, its price in the international market will be one hundred and ninety dollars.
He said that any such move by Russia will destroy the world’s economy and starve millions of people. In these circumstances, Western countries should reconsider their policies and lift sanctions on Iran, and Saudi Arabia and other countries should be persuaded to increase oil production.
Pakistan bought $20 billion worth of oil and gas last year which could go up to $30 billion this year worth Rs 6,000 billion in Pakistani currency.
The government should provide interest-free loans to the people, shopkeepers and industrialists for solar energy, wind power plants should be set up, corporate farming should be introduced in agriculture and self-sufficiency in agricultural commodities should be achieved.
Sick units should be privatized as ignoring these reforms would be economic suicide.