ISLAMABAD - Economic experts, speaking at a webinar on ‘The State of Pakistan’s Economy - Moving Forward’, said that the country has to improve its exports and this would help it in dealing with the dire economic situation that it finds itself in. The webinar was hosted by TV anchor and journalist Talha Jatoi and speakers included Former Chief Economist of the Planning Commission and newspaper economist Dr Pervez Tahir, Honourary Investment Counsellor for the Board of Investment Dr. Tabassum J Khan, economy and finance expert A A H Soomro and senior economics journalist Mehtab Haider. The host opened the conversation by talking about how the economy is going towards hyperinflation similar to what happened after World War I when buying even a loaf of bread became beyond the reach of many people. Soomro said that lack of willingness to solve problems was a major impediment to actually moving forward. He said that Pakistan’s exports-to-GDP ratio was very low and needed to be increased. He said that companies like TRG brought in millions of dollars to the country but that the state was not able to support such companies, citing its recent legal problems caused by a former CEO who had to step down in disgrace. India, Russia talk free trade deal in step-up of relations
Dr Tabassum said that Pakistan’s priorities are still unidentified. He added that the biggest problem is that we still haven’t taken steps towards self-reliance. He said the biggest impact of economic weaknesses and challenges fell not on the elite but the middle and lower classes, which are the backbone of any economy. He spoke briefly about cases like TRG Pakistan where its former CEO Zia Chishti sued the entire board of directors and this caused problems for them given that many of them are overseas based well-known investors. He said that a court issuing arrest warrants in such a situation was counterproductive not least because the company generated over $100 million in exports annually. Dr Pervez Tahir said that reduction of expenditures is crucial and will help curtail the fiscal deficit. He said repaying loans and their interest were the two biggest expenses on the economy. Soomro said that Pakistan’s rupee had depreciated 50-60% in a year which sharply eroded people’s purchasing power. He said there was also a dire need to take more stringent population control measures for the future. Journalist Mehtab Haider said that the elite needed to pay their fair share of tax and that the government needed to look for new ways to increase exports. Oil drops over 1% on higher dollar, interest rate concerns
The Nation, 18 Apr, 2023