KARACHI: Chairman National Business Group Pakistan and President Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain expressed concern over increasing inflation due to high oil prices making life difficult for the masses.
The global economic system and developing countries are under threat as inflation is increasing due to high oil prices, he said.
He said that countries producing oil, gas, coal, grain and palm oil etc have created a supply issue resulting in increased demand which is jacking up prices.
On the other hand, freight charges have been increased to the highest level which is fanning the crisis, he added.
Mian Zahid Hussain further said that the price of energy is moving up as IMF has ordered an increase in per unit tariff by Rs 1.50 and FBR has increased revenue target by Rs 500 billion.
The power sector’s circular debt and capacity payments have become potent threats while there is no sign of a reduction in imports.
Investors are facing scarcity of funds as the construction amnesty scheme has not fulfilled the cited objective of low-cost housing but it has sucked capital from the market leaving industrialists high and dry.
Political instability, water scarcity and the new wave of terrorism are also some serious threats that should be tackled properly, he said, adding that the slide of rupee has increased public debt by billions and food prices in the international market is at ten years high threatening masses as Pakistan has become a net food importer.
He noted that SBP is trying to improve the situation by discouraging the purchase of cars and imposing condition of 100 percent cash margin but it has not improved the situation as thought, therefore, it may opt for increasing the interest rates to cool down the economy which will hit jobs.
The only option for Pakistan is to boost exports to improve the economy, he said.
Copyright Business Recorder, 2021
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