Secretary General (Federal) of the Businessmen Panel and former chairman Standing Committee of FPCCI, Ahmad Jawad has said the gap between rich and the poor is widening and no effort has been made to reduce it so far. He expressed displeasure over the government's inaction in this regard, citing the timing that trade talks with some countries are in the final stage and it is hoped result of such efforts would be beneficial for the country.
He admitted that the country was passing through hard times but he hastened to add that the situation is not as bad as painted by some international institutions which want frustration and unrest among the masses.
Ahmad Jawad noted that instead of following a policy of self-reliance, the government was borrowing billions of dollars from friendly countries and also ready to sign a bailout package with the IMF to rescue the economy from further damage. He said prices of food, vegetables, fruits, gas and fuel have escalated to alarming proportions. He cited that immediately after coming to power, the PTI had constituted an Economic Advisory Council comprising of renowned economists but during the last eight months things have deteriorated.
He further noted that focus and energy of the PTI government was on launching campaigns against the allegedly corrupt PML-N and PPP and not on utilising its energies on truly transforming Pakistan into a welfare state by establishing rule of law, putting a proper justice system in place, abolishing the VVIP culture, and carrying out across-the-board accountability.
BMP's veteran said that after eight months of Asad Umer's test inning, Prime Minister Imran Khan has finally picked up a PPP stalwart Hafeez Sheikh as his adviser on Finance. He said Hafeez is renowned economist and also enjoy well reputation at World Bank and IMF, but his appointment also shows that PTI had no other person to assume the office of the Finance Ministry. He said those raised slogan of Naya Pakistan now seen looking towards PML N and PPP's experienced team to contribute in the capacity of technocrats.
"I remember the tenure of Hafeez Sheikh when US dollar's value in terms of rupees went up to Rs 108 alongside massive borrowing that Imran Khan highlighted in its public gathering. So we have to be ready for another devaluation of PKR as IMF and World Bank will be more comfortable with him to implement their agendas.
He said he didn't see any out of box change in the affairs of the Ministry of Finance and the country's economy after addition of Hafeez Sheikh. Ahmad Jawad asked why we don't fix the exchange rate like Malaysia did during the previous tenure of Dr Mahathir to stabilise its economy because they knew IMF solution is not an answer.
"We understand that the country's debt is a serious issue and government has to pay back the loans which previous governments got in order to continue the credibility of Pakistan, but is this the correct method to pay loans against fresh borrowing on monthly basis and seeking another IMF program. This is the only solution in the hands of the present finance minister," he lamented.
BMP official said government couldn't initiate a transparent and clear privatisation process in its first seven months and yet to begin privatisation process. He suggested government may sell at least 50 percent shares of the state-owned companies along with transferring their management to the private sector for the repayment of country's debt which could help us and in future our expenses may also go down.
"One must understand new borrowing to repay previous loans cannot be told to people as an argument because you can't sell this to public if you continue it," he said. To continue with the austerity drive, there are so many organisations such as TDAP, Pakistan Tobacco Board, etc, which cannot be helpful for public and economy so why don't government decide to close them.
He said that every year, Commerce Ministry rendered billions of rupees to TDAP for promotion of exports but in last ten years we didn't see optimum contribution of this authority and its role was limited to paying salaries to its staff and bribe the small trade bodies of the country. "I think TDAP role may be shifted to FPCCI and let FPCCI conduct exhibitions to promote Pakistani products every year and for that Ministry of Commerce may release some funds to the FPCCI for specific purpose, he proposed.
Ahmad Jawad also suggested that Prime Minister may share the concrete policy of the government on how to repay the previous loans instalments other than the fresh borrowing, because this confusing economic situation may stop the day to day progress of the industry and the businesses.