Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain has said that the economic uncertainty is melting away swiftly after the staff level agreement with the IMF. He said that the public and investors have breathed a sigh of relief and the situation will improve further with Pakistan getting $1.1 billion after the deal is ratified by the board of the lender.

 In a statement on Friday, Mian Zahid Hussain said that taking advantage of the respite from this agreement, all the necessary reforms should be implemented without delay to correct the direction of the economy. Reforms have become necessary as the debt burden of the country has increased greatly and inflation is also high, which has troubled the people, he added. The business leader said that the financial condition of the government is improving and IPPs have been paid 140 billion rupees, which has reduced the concerns of investors in this sector and improved the overall situation. Meanwhile, coal is becoming cheaper in the global market, which is reducing the production cost of all coal-using sectors, including power plants and cement manufacturers.

 The industries using coal should pass on benefit of reduced prices to the masses without any delay, he said, adding that the prices of coal has come down by 77 percent since March 2022. Mian Zahid noted that reducing power tariff will provide relief to the masses and business community, while cheaper cement will activate the construction sector.

 Due to the reduction in foreign loans, the government has decided to borrow 11 trillion rupees locally during July, August, and September in order to run the country, he observed. This will increase the debt burden and increase the cost of debt servicing from 7000 billion rupees to 9000 billion rupees. Mian Zahid Hussain said that there is an urgent need to privatize failed government institutions, increase the tax base and eliminate power losses to save Pakistan from economic collapse.

Credit : Independent News Pakistan-INP