April 26, 2017
President Pakistan Businessmen and Intellectuals Forum (PBIF), President AKIA, Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister Mian Zahid Hussain on Wednesday said country is grappling with low savings and low investment trap which is harmful for the economy.
Masses are not inclined towards savings due to lack of trust on the financial institutions, inflation and negative rate of return, he said.
Mian Zahid Hussain said that Government should take note of the situation and restore confidence of the masses in the system so that they can save to provide sufficient funds for the developmental projects.
He said that ratio of national savings in India is above 31 percent while it is 29 percent in Bangladesh and 24 percent in Sri Lanka but the same in Pakistan is less than nine percent which continue to fall since last decade.
Pakistanis earning from forty thousand to five hundred thousand rupees per month have a saving average of 14 percent while the same in other regional country stands at 27 percent, he informed.
The business leader said that only fifteen percent Indians keep their saved money at home but in Pakistan majority follow the trend due to lack of trust on financial institutions.
A good number of people don’t like to keep money in banks or saving centres due to negative rate of return while those with ample savings transfer funds abroad for better profit.
He asked the government to take steps to restore confidence of the masses in the system so that they can save and invest in the country which will save the government for seeking help from international lenders.
