The Lahore Chamber of Commerce and Industry (LCCI) has expressed concern over the slow economic growth, increasing fiscal deficit and hysterical rupee devaluation, and believes that the country's economy is at a high risk and remains vulnerable to internal and external shocks.
LCCI President Malik Tahir Javaid, Senior Vice President Khawaja Khawar Rashid and Vice President Zeshan Khalil said the continuous increase in the fiscal deficit will push the country's economy towards a major downturn, which is already in a precarious condition due to various core issues that need to be addressed on urgent basis. They pointed out that the two main reasons for increase in the deficit is inability to control expenditures and lack of a plan to generate more revenue.
Malik Tahir Javaid said that loss-making public sector enterprises (PSEs) are burdening the economy with Rs 600 billion every year, but the government can save Rs 200 billion every year by placing good governance practices in PSEs.
"Without wasting any time, the federal government should take prudent decisions in the larger interest of the country. The current account deficit could also be reduced by at least Rs 300 billion by maintaining and regulating public spending and pursuing a sound fiscal policy. The fiscal deficit could also be lowered by increasing government revenue, for which effective measures were needed to expand the tax base by bringing all sectors under the tax net," he added.
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