Muhammad Saleem

Pakistan needs sustainable growth and job creation for long-term economic stability, Vice Chairman of Pakistan Hosiery Manufacturers and Exporters Association (PHMA) Hazar Khan tells WealthPK.

“Pakistani entrepreneurs know we are at a crossroads. We are eager to pull Pakistan out of the current economic crisis, but we need business-friendly policies. Lack of consistency in economic policies is badly hurting the business environment. Globally, businesses need a stable and consistent leadership. Without ensuring stability, we are just chasing our tail,” he added.

He pointed out that every time a new government comes into power, they prefer to tear up the old rulebook, often without consulting the stakeholders. “The high energy costs have played havoc with businesses, making products more expensive. However, the recent cut in electricity prices is expected to bring some relief to the industry.

Raw materials remain expensive, and supply of gas and electricity is inconsistent,” he said. “We simply ask for a level playing field to ensure the country’s prosperity and progress. It is the duty of those at the helm to create such an environment. The rulers are struggling to attract foreign investment, but that is not possible without first addressing the basic issues faced by the entrepreneurs.

We must support the local industries to make Pakistan more appealing for the investors,” he suggested. Shedding light on the root causes behind Pakistan’s economic challenges, Muhammad Ashraf, a teacher at the Government College University of Faisalabad, said, “We are grappling with multiple issues like low exports, high imports, inflation, and mounting debt.

These woes did not crop up overnight, but have been snowballing for years due to poor planning, political instability, and dependence on foreign loans. The biggest thorn in our side is our habit of relying on short-term fixes. Rather than focusing on lasting solutions, we prefer to go for borrowing more money,” he said.

These quick fixes are a double-edge sword, he warned, saying such decisions make a situation worse rather than bringing relief. Suggesting long-term solutions, Muhammad Ashraf emphasized the need for deep structural reforms, particularly in the tax collection system. He noted that the Federal Board of Revenue (FBR) had to struggle a lot to collect tax from businesses and the general public.

“Our tax collections reveal that only a small portion of people and businesses actually pay taxes. This situation not only creates an unfair burden on the honest taxpayers but also limits the government’s ability to run its affairs effectively,” he added.

“We need to invest in education and skill training,” he said, claiming that a better-educated and skilled workforce is crucial to increasing productivity and ensuring sustainable growth. He urged the rulers to reduce their reliance on imports and foreign loans, and instead focus on boosting exports to improve Pakistan’s trade balance and ensure long-term economic health.

Credit: INP-WealthPk