(August 26, 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 millions of people have been affected by the devastating rains.
Infrastructure and important crops have been destroyed, farmers are worried, and thousands of households and shops have been destroyed, he added.
Mian Zahid Hussian said that the rains have destroyed crops which have increased food security concerns while the already low GDP has been further affected.
Talking to the business community, the veteran business leader said that profiteers are reaping undue benefits amid rains and no action is being taken against them.
Following the global uncertainty, local instability is also affecting the situation as inflation in the country is setting a world record, he added.
The business leader observed that globally, interest rates are rising, which stabilizes the US dollar and devalues the currencies of developing countries.
Mian Zahid Hussain said that there is no possibility of reduced inflation in Pakistan this year while foreign exchange reserves are decreasing again.
Exports have been affected by the recession in Pakistan’s export markets, which have decreased by 23 percent in July compared to June.
An agreement with the IMF would pave the way for more loans, which would provide temporary support to the economy, but short-term and long-term reforms are needed to improve the economy, which is being ignored.
The central bank has claimed that foreign exchange reserves will increase to 16 billion dollars by the end of this year, but this seems unlikely.
Mian Zahid Hussain further said that economic stability bought with borrowed money is of no use. For stability, production, exports and foreign investment have to be increased while investing heavily in the social sector.