LAHORE: SAARC Chamber Senior Vice President (SVP) Iftikhar Ali Malik Friday said with the term of the present government coming to an end, Pakistan is facing a huge economic crisis due to the prolonged political turmoil, the absence of viable business-oriented policies, which may lead the country to an economic catastrophe.
Talking to a delegation of city traders here, Iftikhar Ali Malik said if the proper steps are not taken immediately to end political instability in Pakistan, he feared that more of 70 percent business would be collapsed. He said in the last 13 years, Pakistan has experienced both war and political quagmire, including assassinations, bombings, sit-ins, demonstrations, violence and armed clashes.
He said that political instability, below the mark foreign direct investment, high cost of doing business, politics on mega projects like Kalabagh Dam, unemployment rising, millions slipping below poverty line, women and children dying in stampedes for a few kilogram of flour, exchange rate depreciating, fuelling inflation and contributing to the surge in public debt have led to stagnant growth in Pakistan.
Pakistan also saw its relations with international financial institutions deteriorating, the Friends of Pakistan showing reluctance in providing financial support and hence overall balance of payment turning negative, foreign investors losing confidence in Pakistan’s economy and economic managers with consequent nose-diving of foreign investment.
Iftikhar Malik said it is strange that the incumbent government, claiming to have a strong majority in parliament, has miserably failed to create political stability coupled with sound economy in the country. “People within and outside the country had a lot of expectations about political stability, strengthening of democracy, rule of law and respect for judiciary,” he added.
According to a rough estimate, the value of coal reserves in Pakistan is 187 times more than the GDP of Pakistan and only 2 per cent of Pakistani coal reserves can generate 20,000 MW of electricity for almost 50 years.
In addition to copper and coal, the country has vast reserves of precious stones, gypsum, salt and marble but instead of taking full advantage of these God-gifted resources most of the share being exported in raw form. He said that KBD will produce 3600 MW or 31.5 billion watts of electricity that would cost only Rs2.50 per unit and country would be saving $4 billion annually in the account of electricity generation just after 5 years of KBD construction.
He said that stability is a key to making the country an economic giant and this is only possible when all political parties sit together setting aside their political differences to chalk out a comprehensive economic plan for the betterment of the people of Pakistan.
