Pakistan Industrial and Trade Associations Front (PIAF) has urged the government to declare year 2011 as 'year of power generation' and initiate work on mega water projects. PIAF Chairman, Sohail Lashari, in a statement on Friday, said the federal commerce minister has taken a wise step by coming up with a framework to give boost to exports, but his decision would only work if he takes the business community into confidence over the measures he has planned for the year.
Business community has the capacity and the ability to jack up volume of exports to the staggering figure of $50 billion, provided they are given the required and desired opportunities and infrastructure, he said. Giving a roadmap for the revival of economy for year 2011, he urged the government to utilise all available resources and motivate all segments of the society for turning the economy around.
He observed that power outages, repeated hikes in prices of petroleum products, electricity rates, gas shortage, unprecedented increase in prices of daily use items and bad governance had disturbed the entire business atmosphere and a wholesome approach is direly needed to cope with the situation.
To overcome energy shortage, PIAF Chairman said that government would have to adopt alternate means of energy generation besides initiating work on construction of water reservoirs including Kalabagh Dam. He said that the country is self sufficient for power generation through solar means, thus the government should come up with a package of incentives so that maximum number of people could be able to use solar equipment. "Unless and until dependence on thermal power is curtailed, there are hardly any chances of economic revival and precious foreign exchange was being spent on oil import", he remarked.
Lashari also stressed the need for bringing down the fast escalating rate of inflation that has now started taking its toll. While calling for bringing down the rate of interest, he said that the State Bank of Pakistan should divert its attention towards the 'banking spread' that is intolerable and taking the equity away from the reach of the business community.
He also said that there is a dire need to take corrective measures and shift focus on Reformed General Sales Tax would complicate things beyond the expectations of the government. It would be better for the policymakers if they concentrate on increasing tax to GDP ratio which is lowest in Pakistan, he maintained.