Zahid says lack of investment can hurt prospects of new IMF programme

KARACHI: Chairman of National Business Group Pakistan (CNBGP), President Pakistan Businessmen and Intellectuals Forum, Mian Zahid Hussain said that it is sad that the investment ratio in the country has come to the lowest level in fifty years.

He said the lack of investment could affect the availability of a new IMF program, which would be unfortunate.

He added that some irresponsible politicians are bent on pushing the country into crisis, which will also cost them their supporters.

He said that economic stability has come to the country due to Prime Minister Shehbaz Sharif’s efforts.

However, political stability has not come, which has caused investors to be worried and not ready to invest in Pakistan. The Prime Minister is trying hard to attract investment in the country, and Saudi Arabia and the United Arab Emirates have assured him of fifteen billion dollars of investment.

However, the prices of electricity and gas, the highest policy rate, and political instability are hampering the PM’s plans. At the same time, some politicians are not ready to play a serious and positive role and are fanning instability.

Mian Zahid Hussain said that according to the latest data, the ratio of investment in Pakistan has reached the lowest level in the last fifty years. During the current financial year, it remained at 13.1 percent of the GDP, which is less than the target of 15.1.

Apart from this, there has been a significant decrease in the ratio of public and private sector investment to GDP. This rate has come to the lowest level in 25 years.

He said a year has passed since establishing the Special Investment Facilitation Council (SIFC). However, the expected investment has not come into the country, nor has there been any significant progress in privatization.

If electricity, gas, and failed government companies are immediately privatized, the country could save eight billion dollars annually. He observed that this will bring prosperity to the country and achieve political stability, which will also make internal and external investment possible.

He said economic development will also be possible if policymakers become serious about reforms, which will relieve the government and the people and increase the satisfaction level of international institutions.

Copyright Business Recorder, 2024