Tough decisions ahead to put economy back on track

Punjab governor insists economy suffered massively due to iniquitous policies in the past

LAHORE: Punjab Governor Chaudhry Mohammad Sarwar has lamented that Pakistan’s economy has suffered massively due to iniquitous policies of the previous government.

“The economy has suffered a lot and keeping this in view, the incumbent Pakistan Tehreek-e-Insaf (PTI) government has to take some tough decisions to put the economy back on track,” Sarwar said while speaking at the Lahore Chamber of Commerce and Industry (LCCI) on Wednesday.

He was of the view that though achieving the Generalised Scheme of Preferences Plus (GSP Plus) status was a difficult task, even after getting success in early days of the previous government, it didn’t have any significant impact on Pakistan’s textile exports.

“Under the GSP Plus status, textile exports to the eurozone rose 47% which added $3 billion to total exports, but benefits reaped from the facility are far less than the potential,” he said.



Sarwar highlighted that the gas price disparity among provinces was the biggest issue, but it had been resolved by fixing uniform prices across the country. “Uniform gas prices will be beneficial for the business community and will help enhance exports,” he stressed.

The governor underscored that partnership between the government and business community was a must for progress and prosperity.

“Today, exports and imports are around $20 billion and $58 billion respectively due to bad policies. Exports of pharmaceutical products plunged to $200 million from $400 million,” he said while pointing out that the country could not be economically stable without boosting exports.



Talking about important sectors, Sarwar said per hectare yield of cotton in Pakistan was 700kg whereas in India and European nations the productivity was 2,000kg.

Fishery exports from Pakistan were also far lower than India’s, but the governor suggested that fishery production could be raised substantially. “Promotion of fishery production in rural areas can generate huge employment opportunities and discourage the trend of migration from rural to urban centres,” he said.

The governor added that smuggling was one of the biggest challenges that must be tackled strictly as it was causing a huge loss to domestic industries and the national exchequer. Speaking on the occasion, LCCI members chastised some of the PTI government’s economic policies, particularly the increase in withholding tax on bank transactions.

Published in The Express Tribune, September 27^th, 2018.

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