By Attaul Mujeeb Zeeshan
Lahore
According to the sources of Daily Notable, former Federal Finance Minister Dr. Hafeez Pasha has said that the country had faced difficult economic condition in past but handled. Ongoing economic challenges can also be tackled.
He was speaking addressing a Conference on Medium Term Economic Outlook of Pakistan at the Lahore Chamber of Commerce and Industry. LCCI President Kashif Anwar also spoke on the occasion and shed light on the issues being faced by the country and their doable solutions.
Dr. Hafeez Pasha said that the average GDP growth of Pakistan in the last 4 years has been 2.5 percent. The population has also increased at the rate of 2.5 percent, which means that our average income has not improved at all.
He said that our economy suffered Covid 19 and floods. He said that we are a committed nation. In 1971 and 1998 we also faced difficult economic conditions but handled. He said that in the last 15 years, our exports have increased at the rate of 2 percent annually, while imports have increased at the rate of 8 to 9 percent, due to which our current account deficit and trade deficit have increased.
He said that in the year 2017-18, our current account deficit was 19 billion dollars. Currently, our external debt has exceeded $130 billion. Dr. Hafeez Pasha said that we need 22 to 25 billion dollars every year for debt management. He said that the reserves of State Bank of Pakistan are $8 billion.
He said that unemployment in the country was previously 7 percent, which has now reached 10.5 percent. Poverty has also increased by the same proportion and the poverty rate has increased from 33% to 45%. Currently, 20 million educated youth are unemployed in the country.
LCCI President Kashif Anwar shed light on the problems faced by the industry. He said that the biggest problem at the moment is the rupee devaluation which is increasing the inflation. The results of rupee devaluation are also visible in the form of soaring external debt.
He said that we have to take concrete measures for loss-making state owned enterprises. Either they should be privatized or restructured. President Lahore Chamber urged Dr. Hafeez Pasha to express his opinion on the solution of these problems.
Dr. Hafeez Pasha said that the main lifeline of our economy lies in rise in exports and tax revenue. In 1960, we introduced the bonus voucher scheme that should be re-introduced. This will increase exports and decrease imports. A similar model exists in Bangladesh.
He said that to increase our tax base we have to increase the tax collection rate from more sectors like agriculture and real estate. Currently, our industry is bearing the highest tax burden. We have to reduce the losses in the power sector, especially the DISCOs. We have to reduce the losses of national institutions or privatize them.
