Cabinet calls for building investors' trust

Says security concerns deter investors, sustainable economic recovery

ISLAMABAD:

Cabinet members have expressed concern over the law and order situation in Balochistan that has dampened investors' interest in the province, urging the government to take all allied parties and key stakeholders on board to build the trust of investors.

Additionally, Finance Minister Muhammad Aurangzeb noted the far-reaching consequences including the negative impact on the social, information technology and telecom sectors as well as healthcare and educational programmes, hindering a sustainable economic recovery.

Sources told The Express Tribune that cabinet members, in a recent meeting, shared concerns over the security situation in Balochistan and the destabilising activities being carried out by miscreants in other provinces.

They underscored the need for taking the allied parties and key stakeholders on board to address the challenge. It was stressed that alongside a kinetic strategy, governance and political strategies must also be adopted to address grievances of the people of Balochistan.

A cabinet member called the current situation untenable that should be settled as it was undermining investors' interest in the province. Finance minister noted that political violence and terrorist attacks had not only led to the loss of human lives, but also caused significant damage to the economy.

In this regard, the economic advisers' wing of the Finance Division has presented an alarming analysis of losses, estimated at a staggering Rs190 billion per day, impacting not just the country's gross domestic product (GDP), but also exports.

It was agreed that the government had brought economic stability against all odds and with great difficulty and hard work, but such incidents left an adverse impact on the economy.

During the meeting, Prime Minister Shehbaz Sharif condemned the terrorist attack carried out on October 7 in Karachi that killed two Chinese nationals and injured several others, including police officials. He emphasised that Pakistan would continue to collaborate with its Chinese counterparts while ensuring the safety and security of Chinese nationals in Pakistan.

He highlighted that the whole world was recognising the economic turnaround in Pakistan, which was reflected in the recent economic indicators, in particular a significant drop in inflation, the stability in economic growth, increase in remittances and rise in the KSE-100 index, as well as approval of the International Monetary Fund (IMF) loan programme.

He added that Saudi Arabia, the United Arab Emirates and China played an instrumental role in the approval won from the IMF board.

The PM also spoke about the visit of Malaysian Prime Minister Anwar Ibrahim from October 2 to 4, when the two sides discussed a wide-ranging agenda to further strengthen bilateral relations and expand economic cooperation. Both sides signed several memoranda of understanding to promote trade and investment.

Also, the commitment from Malaysia will enable Pakistan to enhance export of meat and rice to the Southeast Asian nation.

Referring to the recent achievements, especially on the economic front, the chair appreciated the commitment and hard work of cabinet members and government officers.

The PM assured the meeting that no individual or group would be allowed to disrupt the momentum and undermine the ongoing economic progress.

The chair appreciated a significant increase in the number of tax return filers, which "has now doubled". At the same time, inflation went down to 6.9% for September 2024 – the lowest in the past 44 months.

He added that the protected electricity consumers using less than 200 units in a month benefited from a subsidy of Rs50 billion, which had been diverted from the Public Sector Development Programme to alleviate their hardships.

It was noted that prices of petroleum products were gradually decreasing, not just because of market forces, but also due to no additional levy.

The premier stressed that the government was taking all possible measures to provide relief to the general public. He expressed satisfaction that both the IMF and World Bank had appreciated Pakistan's initiatives and pledged continued support.

Emphasising the importance of safeguarding the hard-earned outcomes, the PM urged people to identify and counter the potential threats, and ensure that the journey towards prosperity continued with the same momentum.