Despite having its best policies in the world, Pakistan has been suffering on the economic front only because of poor-level of implementation of the same, Lahore Chamber of Commerce and Industry (LCCI) President Shahid Hassan Sheikh told a 86-member National Defence University delegation headed by Air Vice Marshal Faiz Amir here at the LCCI on Monday.
The LCCI chief said the issue of poor-level of implementation of policies needed to be tackled on priority basis to take the country to the required level of economic prosperity. He said the economy was facing several challenges, including rising current account deficit, high cost of doing business, inflation, poor law and order and shortage of skilled labour.
He said the country had been facing the problem of widening current account deficit for the last few years, which rose from almost five billion dollars or 3.9 percent of GDP in 2005-06 to $7.1 billion or 4.9 percent of GDP in 2006-07. Frequent increases in the prices of energy have increased the cost of doing business, which has made it difficult to compete in the international market, he added.
Pakistan's major competitors - China and India - have the advantage of indigenously produced raw materials, highly skilled labour and low utility prices, the LCCI chief said, adding a major chunk of POL prices in Pakistan consists of government levies, which needs to be reduced.
Shahid Hassan Sheikh said the rule of law was a pre-requisite for development of any country. "Unfortunately, the law and order situation in the country is not satisfactory which is making investment shy," he added. The demand-driven growth and high cost of doing business have increased inflation in the country, which is hovering around 10 percent despite a tight monetary policy, he said.
He stressed the need for production-led growth. LCCI Senior Vice President Yaqoob Tahir Izhar and Vice President Mubasher Sheikh said several initiatives had been taken by the government to improve the infrastructure of the province and give value addition to its industries.
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