Economic challenges: Focus on root causes and sustainable steps urged
Relying on temporary measures that may mask underlying economic vulnerabilities is not a sustainable path to long-term prosperity.
He stated that dollar scarcity suggests that some fundamental economic problems remain unchanged; therefore, the government should focus on enhancing productive capacity, diversifying exports, and increasing investment. Long-term solutions are crucial for sustainable economic growth.
Although Pakistan is currently under an IMF program and its respect and dignity have increased globally, there is no significant foreign investment visible in the domestic economy.
The real solution lies in increasing exports and competitiveness. Without export expansion, the surplus does not represent genuine economic progress. This emphasis on the need for export expansion is crucial for enhancing Pakistan's global economic standing.
He emphasized that the recent achievement of a current account surplus comes at a crucial time for Pakistan, as the country seeks to demonstrate economic resilience while managing external debt obligations and working toward sustainable fiscal stability.
He said that the historic increase in remittances from overseas Pakistanis is welcome, which resulted in Pakistan's current account surplus of $2.1 billion in fiscal year 2025.
He congratulated the Prime Minister and Finance Minister on this achievement, which came 14 years after the previous one; however, he warned that this improvement is temporary and should not be considered an indication of sustainable economic stability.
He noted that according to the State Bank, remittances have pushed foreign exchange reserves to $14.5 billion.
Mian Zahid Hussain emphasized that remittances from overseas Pakistanis are a blessing. However, these cannot substitute for reforms and productive capacity, and relying on them could prove dangerous.
He emphasized the urgency of converting the $29 billion trade deficit into a surplus. With exports stagnating at the $32 billion level, Pakistan is among the weakest countries in global competitiveness.
The current account deficit has decreased due to discouraging imports of goods; however, this has adversely affected the local industry, which relies on importing raw materials and components.
The strategy of import discouragement has impacted production, increased unemployment, and affected exporters' global competitiveness.
He emphasized the need for long-term measures to address economic challenges.
He termed the repeated reliance on loan rollovers from China, Saudi Arabia, and UAE, along with import controls, as an unstable strategy.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
a day ago
- Business Recorder
PCDMA warns ‘Abrupt rollout of FBR's new e-invoicing disastrous for SMEs'
KARACHI: The Pakistan Chemicals & Dyes Merchants Association (PCDMA) has warned that the abrupt rollout of the Federal Board of Revenue's (FBR) new e-invoicing system, set to take effect from August 1, 2025, could prove disastrous for Small and Medium-sized Enterprises (SMEs) due to a lack of preparation and consultation with stakeholders. Terming the move unfeasible and poorly timed, PCDMA Chairman Salim Valimuhammad urged the FBR to delay implementation, arguing that most traders lack the technical infrastructure, training, and resources necessary to comply with the new digital requirements. PCDMA Chairman labelled the sudden implementation as 'unjust and disastrous' for businesses, particularly Small and Medium-sized Enterprises (SMEs). He criticized the FBR for rolling out the system without conducting awareness campaigns, training programmes, or seminars to equip taxpayers for compliance. 'The FBR's schedule is completely detached from ground realities,' Valimuhammad said. 'Most taxpayers lack the IT infrastructure, technical expertise, and even stable electricity needed to adopt this system.' He highlighted that small traders, in particular, are ill-equipped to register, issue vouchers, and generate e-invoices overnight without proper guidance. The PCDMA chairman also pointed out the absence of stakeholder consultation prior to the issuance of the SRO 1413 (l)12O25. He noted that many businesses have sought a 60-day extension to prepare for the transition, but the FBR has yet to provide a clear roadmap. Valimuhammad proposed a phased implementation, starting with public limited companies, followed by a performance review before extending the policy to smaller businesses. 'If the e-invoicing system hasn't been fully successful for companies with turnovers exceeding one billion rupees, how can it be imposed on small traders with even fewer resources?' he questioned. Expressing willingness to cooperate, Valimuhammad offered PCDMA's support for industry-wide training. 'If we are educated on this system, we will ensure all our members are trained. I am ready to learn even at this stage in my life, but we must be taught first,' he said. The PCDMA chairman urged the FBR chairman to defer the e-invoicing mandate until comprehensive training and awareness initiatives are in place, warning that the current approach risks disrupting business operations across the country. Copyright Business Recorder, 2025
Business Recorder
a day ago
- Business Recorder
Operation against sugar profiteers intensified
LAHORE: The Lahore district administration on Saturday intensified its crackdown on sugar profiteers, ensuring the essential commodity is available at regulated prices for the city's residents. According to the administration, the Assistant Commissioners, SDOs from the Punjab Enforcement and Regulatory Authority (PERA), and Price Control Magistrates have been actively monitoring markets to enforce compliance with fixed rates. The administration's zero-tolerance policy has led to significant actions, including fines imposed on multiple shopkeepers and the sealing of one shop found selling sugar at Rs190 per kg, with a case registered against its owner. To address complaints of sugar shortages in Baghbanpura, the administration swiftly supplied 36 tonnes of sugar to stabilise availability. Commenting on the crackdown, Deputy Commissioner Syed Musa Raza said that sugar would be sold at Rs173 per kg across Lahore, reinforcing the administration's commitment to preventing exploitation through inflated prices. 'The ongoing crackdown targets profiteers and hoarders, with strict penalties for violations. To facilitate reporting, the administration has established a dedicated control room number (0307-0002345) and encouraged residents to use social media platforms to lodge complaints about overpricing,' he added. He made it clear that exploitation under the guise of business will not be tolerated, and the administration is working tirelessly to ensure the availability of essential goods at fair prices. 'These efforts reflect the administration's dedication to protecting Lahore's residents from unfair trade practices, fostering a stable and equitable market environment through proactive enforcement and vigilant oversight,' he added. Copyright Business Recorder, 2025
Business Recorder
a day ago
- Business Recorder
Tax exemption scandal hits excise dept
LAHORE: A damning audit report has revealed widespread irregularities in the tax exemption process for 5-marla houses, with serious discrepancies and favouritism allegedly practiced by the excise department. According to the 2022-23 audit report, a staggering Rs 136.5 million in tax exemptions were granted under dubious circumstances, with many ineligible individuals exploiting the 5-marla house exemption clause to evade property taxes. The audit report highlights glaring lapses, including cases where houses exceeded the 5-marla limit, while others lacked necessary documentation to qualify for exemptions. The report slams the department for granting exemptions without proper field verification and scrutiny, suggesting collusion and negligence among officials that resulted in massive losses to the treasury. The authorities have been directed to ensure immediate recovery of the exempted amount and take action against those responsible. The audit report, tabled in the Punjab Assembly, recommends ensuring transparency in the tax exemption process to prevent such scandals in the future. Copyright Business Recorder, 2025
