January 02, 2017
President Pakistan Businessmen and Intellectuals Forum (PBIF), President All Karachi Industrial Alliance, Sr. Vice Chairman of the Businessmen Panel of FPCCI and former Provincial Minister Mian Zahid Hussain on Monday said exports are in free fall since years which is a threat to the economic stability.
Exports are falling while imports continue to grow which is putting pressure on forex reserves therefore government should take concrete steps to boost exports, he said.
Mian Zahid Hussain said that dwindling exports, if not contained, will increase dependence on loans which is against the national interests.
He said that exports fell by eight percent in 2014-15, it further fell by 12.5 percent in 2015-16 and registered a fall of nine percent in the first quarter of the current fiscal.
During the same period imports grew by ten percent widening fiscal deficit by 29 percent while reduction in remittances and dismal agricultural position further stifled the situation.
The business leader noted that credit offtake has been reduced, tax collection has improved but insufficient to meet requirements, some improvement has been recorded in the large scale manufacturing but the most important sector of textile is still in troubled waters.
He said that textile sector should prefer value addition and compete with rivals on the basis of quality and not on the basis of prices.
Mian Zahid Hussain added that best solution to settle problems facing economy is to take hard and unpopular decisions. Every major city should have showrooms displaying export goods like textiles, sports goods, leather goods, cutlery etc. which will facilitate buyers from other countries.