Shehbaz should form a broad-based govt: business community leader

KARACHI: Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, Mian Zahid Hussain said that Mian Shehbaz Sharif should form a broad-based government after consultations.

Mian Zahid Hussain said that after forming the government, the PM should direct immediate negotiation for a new loan from the IMF to save the country from bankruptcy. He said that various international and local institutions and experts are sounding the alarm about Pakistan, while some unsuccessful and frustrated political elements within the country are also engaged in efforts to damage the country, which is condemnable.

He said that the burden of local and foreign debt on Pakistan is continuously increasing. The only short-term way to pay these debts is by taking new loans to repay old ones. Borrowing has become necessary as domestic production, exports, remittances, and investment etc. cannot solve the problem of a shortage of funds.

He said that it is important for Pakistan to remain under the supervision of the IMF due to increasing debts, but the results of this will be more inflation, unemployment, a decline in public services, and cuts in development projects. He said that the economic situation has made the lives of people difficult, while another IMF deal will add to the miseries of the masses.

He said that in this critical situation, there has not been a notable reduction in government expenditure that was expected, nor has there been a significant increase in revenue. There has been no progress towards direct taxes, efforts to reduce the budget deficit, or the negative effects of the current situation on the people.

He informed that presently Pakistan’s external debt has reached 124.6 billion dollars, and since 2011, domestic debt has increased six times to 146.4 billion dollars. Gross external and domestic debt and liabilities increased from $145.7 billion to $222 billion.

Copyright Business Recorder, 2024