KARACHI: The Pakistan Business Council (PBC) has strongly urged the government to open up trade and business with India, and stressed on increasing regional commerce as Pakistan’s traditional export markets have shown little growth in recent times.
Speaking at a press conference on Thursday, PBC representatives welcomed the ongoing dialogue between political parties on economic reforms. “Gone are the days when trade with India would be a risk to our security. By opening trade with India, we will access a middle class 10 times larger than ours,” said a representative.
PBC also urged the policy-makers to finalise their economic reforms agenda and begin its implementation.
However, they expressed concern at the prevailing economic situation in Pakistan. They suggested the government immediately constitute a board of professionals to head major public sector organisations, and give them two years for restructuring.
“Pakistan needs to restructure the power sector which eats up Rs225 billion every year out of the Rs300 billion that our public sector receives,” said Engro Corporation CEO Asad Umar.
Representatives argued that restructuring of public sector organisations will increase employment, as opposed to the perception that people will be laid-off.
Regarding the power sector, they said liquefied natural gas (LNG) projects could be finalised in weeks and that the government should immediately accelerate its policies on oil and gas exploration.
Business leaders also said Pakistan badly needs restructuring in its tax system, where taxpayers have been crushed under the burden of heavy levies, while many sectors enjoy tax holidays.
They recommended that the government address the severe energy crisis by taking critical reform decisions, which tackle pricing distortions, production and distribution inefficiencies and develop indigenous energy resources.
PBC members also urged the authorities to increase expenditure on education and health.
It was reiterated that PBC believes Pakistan’s economy is endowed with exceptional human and natural resources. Given the right policy environment, Pakistan can become a dynamic economy, which meets the aspirations of all its citizens in the near future.
Published in The Express Tribune, February 11th, 2011.
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