Economic sanctions failed to tame Russia. Europe’s industries are moving to other countries due to energy crunch. Developing countries can stabilize their economies.

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(Sept 30-2022)

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 Friday said the west has failed to subdue Russia through economic sanctions in the wake of war.

Russia has used natural gas as a weapon which has damaged the EU’s economy and now Europe’s industries are moving to other countries to avoid bankruptcy, he said.

Mian Zahid Hussain said that Europe’s industrialists are preferring countries that do not depend on Russian gas and oil for their energy and where inflation is low.

Talking to the business community, the veteran business leader said that this situation is a rare opportunity for developing countries to stabilize their economy, which needs to be taken advantage of.

The energy prices there are skyrocketing and the risk of recession is also increasing while thousands of industries have gone bankrupt due to the policies of the EU rulers.

The industries that are running in survival mode are facing serious problems. The current situation in Europe is unlikely to improve soon, which has disappointed local investors.

Mian Zahid Hussain said that Chinese, American and Arab investors who have set up factories in Europe are also either closing them or drastically reducing production.

In these circumstances, developing countries should activate their economic diplomacy and give all possible incentives to European investors to increase employment and technology transfer opportunities in their countries.

The industries that will be shifted include chemicals, batteries, clean energy, fertilizers, aluminium and general manufacturing etc.

Mian Zahid Hussain said that earlier many Chinese companies had moved to other countries due to expensive labour and coronavirus.

The majority of Chinese investors ignored longtime friend and neighbour Pakistan and set up industries in countries thousands of miles away which shows the overall environment, business rules and political stability of our country.

If political chaos does not end, and other economic, social and judicial reforms do not take place, then investment and employment opportunities will continue to be lost, he warned.

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