President Lahore Chamber of Commerce and Industry (LCCI), Shahzad Ali Malik stressed the need for sector-specific measures for the revival of economy, as the political uncertainty has not only dented businessmen's sentiments but also decelerated economic activities in the country. Speaking at the inaugural ceremony of an outlet on Monday, he said the country was passing through a very critical time of its history and facing various internal and external challenges including power outages, repeated hikes in electricity rates, gas shortage, price spiral, mismanagement and bad governance.
Malik said that there was a lack of coherence in the government policies and there was no upward movement on economic front. The power tariff registered almost 100 percent rise in the last three years. Due to this single reason, Pakistani merchandise failed to get due appreciation in international market and the neighbouring countries took full advantage.
He urged the government to evolve a comprehensive strategy with the consultation of stakeholders to overcome the economic crisis in the country. "Until and unless dependence on thermal power is curtailed, there are hardly any chances of economic revival and precious foreign exchange was being spent on oil import." He also stressed the need for bringing down the fast escalating rate of inflation that has now started taking its toll.
Calling for bringing down the rate of interest, he said that the State Bank of Pakistan should divert its attention towards banking spread that is intolerable and taking the equity away from the reach of the business community. He said that it would be better for the policymakers if they concentrate on increasing tax-to-GDP ratio, which is the lowest in Pakistan.
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