Pakistan Business Commodities: A comprehensive approach to rebuilding the economy and bringing it to the Pre-Pandemic Levels is required

Iftikhar Ali Malik

TEXT: Covid-19 and climate change have affected almost all sectors of economy. Thus a comprehensive approach to rebuild the economy and to bring it to the pre-level of the Pandemic is required. Industry, commerce, services, tourism, agriculture, price level of domestic & imported commodities, transport & transportation costs all have registered losses. Labour Sector is the worst hit area. Shortage and high prices of basic necessities of life have further worsened the situation.

Restoration of economy is not an easy task. Priorities should be fixed. First of all the cost of imports be brought down to make industry competitive. Causes responsible of high cost be pinpointed e.g. high cost of energy including POL & Gas and high cost of imported raw materials. Unprecedented inflation is pushing the demand for rise in wages and fares of transportation.

Our imports are higher than our exports, the legitimate solution seems to control the rising cost of dollar or depreciation of rupee value. Preferably cost of dollar in terms of rupee should be fixed at Rs.110/- for some time or when desired results of low cost imports have been derived. Special Economic Zones under CPEC provide golden opportunity to develop SMEs particularly in the field of import substitution and value added exports.

Solar and wind energy along with hydro electricity could give the permanent solution of cheap energy.

Development of SMEs imbibes a number of advantages. It generates employment, normally require domestic raw materials, train labour, keep on searching for latest technologies, both male & female labour is employed and help growth of large industries, require less working capital and help export of small value added items, above all, easy to manage and set-up even in rural areas.

Agriculture is our mainstay. It contributes directly & indirectly 46% to GDP and absorbs 64% of our population with small consumption of 14% of GDP. Unfortunately this Sector is not getting much attention. Desertification is damaging lands but little measures are taken for rehabilitation of lost land. So it is pertinent that agriculture, our mainstay, be protected from further degradation:

i). deserted lands be rehabilitated to provide more fertile land for growing crops & vegetables.

ii). gardens be developed, these will not only provide fruits but also help fight with damages of climate change.

iii). mechanized farming and harvesting be encouraged.

iv). high yield seeds be provided to get increase in farms output, spare land for growing vegetables and fruits.

v). processing of fruits and vegetables be encouraged both for local markets exports.

vi). low cost credits be given to small farmers.

vii). dairy farming & livestock be encouraged to promote export of "Halal Food".

viii). these measures will help us self-sufficiency in food and increase in exports.

CPEC is a game changer, provided Private Sector take maximum interest and locate industries, preferable joint ventures with foreign investors for bringing technology. It could bring prosperity from taking the advantage of main road connecting China & Gwadar. People could earn by installing workshops, hotels, small industries and rehabilitation the barren lands on both sides of the main road. Similarly transport business will get the boom.

Likewise, other sectors of economy could be helped resolve their problems hindering their growth. Tourism Sector must get priority as it is a source of earning Foreign Exchange. For the convenience of tourists' security and services be improved like transportation, hotel accommodation, food, etc. Recreational resorts be developed around the mountains alongside the CPEC Highway. It may attract more tourists.

Iftikhar Ali Malik, Chairman, United Business Group (UBG), President, SAARC Chamber of Commerce & Industry, Former President, FPCCI & LCCI & Chief Executive, Guard Group

Copyright Business Recorder, 2021