Former President of the Islamabad Chamber of Commerce and Industry (ICCI), Dr. Shahid Rasheed Butt, said on Thursday that the industrial sector of the country is sinking, which should be rescued, or employment, revenue, and exports will be badly affected.
The price of raw materials and chemicals used in industries is constantly increasing, the value of the rupee is not increasing, electricity, gas, and oil are becoming more and more expensive, and trade policies are poor, he said.
Shahid Rasheed Butt said in a statement issued here that the production of large scale industries fell by ten percent in 2022–23, while SMEs have reached the brink of destruction.
Interest rates are at a record twenty-two percent in Pakistan, interest rates are at three percent in Malaysia, six and a half percent in India, and six percent in Bangladesh, he informed.
Many countries around the world faced pandemics and natural disasters, but the leadership of these countries tackled the crisis well to resume the development journey. On the other hand, Pakistan’s economy continues to slide at a rapid pace.
The business leader quoted the UN’s report, which says that the elite of Pakistan are getting benefits of 17 billion dollars annually.
Shahid Rasheed Butt said that for this reason, one percent of Pakistan’s richest people own nine percent of national wealth, while 1.1 percent of landowners own 22 percent of agricultural land.
He lamented that all the policies are made for the one percent rich, and they are provided with all possible facilities while the interests of the masses have been put on the back burner.
The country can be pulled out of the current mess if the benefits of elites are reduced and the masses are given some relief, but those in power would never allow it; rather, the elite will be further facilitated.
Pakistan badly needs a new IMG program, even if a financing agreement with the IMF is reached and the nation avoids defaulting, the suffering of common Pakistanis will continue to increase.
He said that the IMF will want more austerity measures, which will lead to added inflation and make it nearly impossible for millions of people to feed themselves.
Shahid Rasheed Butt said that improving the business environment, giving relief to the people, financial discipline, effective spending, increased investment, attracting foreign exchange, merit in state-run departments and companies, and focusing on direct tax can improve the situation.
Similarly, a reduction in debt and fundamental changes in industrial policy are essential to improving the situation, but they are unlikely, as those who have control would never allow them.
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