(July 18, 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 world is drowning in a serious debt crisis.
More than 100 developing countries are facing financial difficulties, and dozens of them may go bankrupt, he said.
Mian Zahid Hussain said that in order to save its economy in the current alarming situation, Pakistan should ensure political stability.
Talking to the business community, the veteran business leader said that Pakistan can pay attention to agriculture which will result in import substitution of $17 billion.
He said that the failed state-run corporations are wasting Rs600 billion annually, power losses and theft is almost Rs600 billion which should be controlled and alternate energy should be promoted.
He said that many countries in Asia, Africa and South America are facing runaway inflation and trying to cope with high prices of energy and food.
These countries have borrowed a lot and damaged their forex reserves while Sri Lanka has failed to tackle the situation resulting in bankruptcy. Many other countries can face after Sri Lanka, he added.
Mian Zahid Hussain said that coronavirus has damaged the global economy which was followed by costly loans to continue popular policies.
The war between Russia and Ukraine has resulted in a shortage of oil, gas, food, fertilizer and hundreds of other things which have damaged the economy of weak countries.
A few months back, the World Bank said that seventy months are facing a serious crisis including some developed economies while in March UN said that 107 countries which are home to 1.7 billion people are distressed.
Presently 69 countries are facing a serious economic crisis, their economy and currency is nose-diving and they can face insolvency soon.
International institutions and rich nations should consider waiving loans and rollover debts and push developing countries to expand the tax net and discourage corruption.
The developing world should also ensure monitoring of debt to stop wastage and leakages while Pakistani leadership should ensure political stability.