By Iftikhar Ahmed
FAISALABAD, Feb 25 (APP): As consultations for new government culminate with political bigwigs agreeing to a coalition government, the business community and other strata of life are pinning great hopes from the new set up for economic revival, reduction in cost of living, energy prices and inflation and creating job opportunities.
Recent political instability coupled with economic recession had severely chocked business activities with discontinuation of economic policies, depreciation of Pakistani Rupee versus US dollar and high production cost further aggravating the situation.
But, the experts and business community still expect better days ahead if the new government resolves for e-governance and IT based mechanism, eradication of corruption and nepotism and sustainable economic policies.
“Political uncertainty played havoc with national economy. The rumors spread by myopic elements shattered the confidence of investors as witnessed from rise and fall of stock market,” remarked Acting President Faisalabad Chamber of Commerce & Industry (FCCI) Dr Sajjad Arshad.
“Pakistan’s dollar bonds shed heavily as in wake of rumors that People’s Party and Muslim League-Nawaz had failed to finalize the future government,” he said. “But, as soon as these parties reached an agreement, a visible increase was recorded in Pak dollar bonds, clearly indicating the importance of political stability in the country.”
He regretted that during the transitional phase of government formation, some elements started trolling the political leadership to appease their foreign masters.
“In such a scenario, consistent economic policies can be a strong reply to these elements and for setting businesses on strong footing to steer country out of present crisis,” Sajjad Arshad said. “Our money market remained highly volatile due to depleting reserves and we can boost our trade and reserves by bringing in investment and sorting out dollars shortage.”
“Cost of production is another element pegging our exports. Our industry pays higher energy cost as compared to regional competitors that makes our exportable surplus costlier in international markets,” he added.
He informed that electricity consumption in FESCO region recorded a massive decline due to reduced economic and industrial activities. “Most of SMEs cannot afford high cost of electricity and have reduced their operation. Poor law and order is another challenge for healthy economic activities.”
Gauging the gravity of situation, Pakistan Muslim League-Nawaz had floated the idea of Charter of Economy that was initially rejected by its political opponents. But, now as almost all political forces have realized the challenge, it is hoped that they would join hands to ensure continuity of policies for a stable economy.
The previous coalition government had also tried to get rid of this situation by considering payments in local currencies with some countries but still most of our foreign business is materialized through dollars.
The experts also believe that unless our imports and exports as well as the current account deficit are neutralized, we cannot bring stability in the financial market.
“Input costs and energy prices are the major challenges for our export industry,” stated Regional Chairman All Pakistan Textile Processing Mills Association (APTPMA) Hafiz Sheikh Muhammad Asghar Qadri. “Rampant increase in energy prices had halted business activities in the country bringing textile industry to the verge of collapse.”
He said massive increase in energy tariff especially gas prices had enhanced production cost for industrial sector that reciprocally decreased economic and business activities.
During recent election, the people proved beyond any doubt that they strictly believed in the democracy and democratic government but unprecedented price hike and inflation had made their lives miserable.
Therefore, the upcoming government will have to introduce prudent policies keeping in view both its international obligations as well as the requirements of business community and local people especially the poor segment of society.
Although reduction in energy prices would be a serious challenge, yet the government will have to go for out of box solutions to explore alternate energy resources and industrial progress especially in an era of booming information technology environment.
“E-government and IT-based mechanism is imperative to resolving crucial problems and accelerating business activities,” remarked a veteran businessman Arif Ali. “The government should also simplify the complaints resolution procedure, weed out corruption and nepotism from concerned departments and provide enabling environment for boosting business activities.”
Elaborating his stance, he said the businessmen especially the exporters’ first pay taxes and then apply for refund. “This process consumes much of their time and energy as many applicants have to also face the corrupt elements in different departments.”
“If this process of applying for tax refund is simplified and shifted to IT-based mechanism, it would facilitate the applicants by saving their precious money and time,” he suggested.
He said the IT-based mechanism and e-governance would also help heads of all departments to positively monitor service delivery and complaint-resolution speed.
As the economy as a whole and business community as specific are in real fix, steering country out of this crunch would be a herculean task for the new government. Therefore, it is obligatory on all political players to at least join hands in this area for revival of economy and securing a better future for our younger generations.
APP/iah/maz (APP Feature Service)
