Pakistan Tehreek Insaf (PTI) Balochistan Women Wing President, Fehmida Jamali showed serious concern on Pakistan's net public debt which has crossed the Rs 18.28 trillion mark, rising about 35pc during the tenure of the ruling Pakistan Muslim League-Nawaz.
She said it will pose a serious threat to the country solvency forcing Pakistan to go back to the International Monetary Fund (IMF) to avoid default on international payments as it did in 2013. Pakistan's external debt was primarily increasing because of the government's inability to enhance exports and attract foreign direct investment (FDI). She warned that the country has been sliding down towards a debt trap and might need another bailout package of IMF, asking the economic managers to review their irresponsible borrowing behaviour.
Jamali also urged that the government should promote FDI which has seen a steady decline from a $5.2 billion peak in 2007-08, despite the government spending on overseas trade offices have been increased to Rs 1.7 billion in 2016-17. She said that only political will and drastic steps can revive the economy, which should have grown significantly and constantly for visible impact. She advocated the need for raising the country's tax base so that tax-to-GDP ratio improves from current 9 percent.
As Foreign direct investment fell by 45 percent to $460 million in the first five months of the current fiscal year, giving a disappointing picture of the economy. Quoting the State Bank of Pakistan data, she said that FDI has been declining for the last three years despite regular investments from China.
Fehmida further told in last two decades, China and India have increased their exports over six and five times respectively compared to Pakistan's 2.7. Turkey, including countries like Vietnam and Bangladesh, has outperformed us in the exports sector regardless of the fact that Turkey has seen a lot of political instability, Vietnam has faced a war imposed by the US and Bangladesh's economy is newfangled compared to Pakistan. Such examples leave less to blame other factors except for our own faults the most.
It's time Trade Development Authority of Pakistan (TDAP) should pull their socks and perform a proactive role by selecting goods and services which give us a comparative advantage in the world markets. For this a scientific and statistical research of the global demand and our product base is necessary. Textile and food are not the only options for us. We need to explore in IT, telecommunication equipment, automotive parts, sports, pharmaceuticals, renewable energy, petrochemicals and more. Diversifying the export base is the first step to sustainable exports for Pakistan. Our human resource is also not competitive; we need to invest in its skills, on the job training, skill up-gradation and dissemination of new knowledge, she added.-PR
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