Pakistan's Political And Economic Turmoil Deepens: Business Community Loses Hope

(MENAFN- Tribal News Network) Pakistan has been grappling with Political instability and economic crisis for several years, and there seems to be no sign of improvement on the horizon. Before the general elections in February 2024, there was a glimmer of hope among the public and the business community that a new government would bring stability, attract foreign investment, and boost employment. However, the government's inability to deliver on these expectations has only deepened the uncertainty.

Fawad Ishaq, President of the Sarhad Chamber of Commerce and Industry, expressed his concerns about the country's economic situation. He remarked that those who closely monitor the economy did not expect a significant change post-election because of the dire state of Pakistan's economy. He criticized the bureaucracy and the Federal Board of Revenue (FBR), stating that their approach is not conducive to bringing about an economic revolution, which is crucial for improving the country's condition.

"The biggest drain on our economy right now is the Independent Power Producers (IPPs), whose capacity payments exceed even the country's defense expenditures. Last year, PKR 2,200 billion was paid to IPPs, compared to PKR 2,122 billion allocated for defense. Until we rid ourselves of these burdensome agreements with IPPs, the economy will not stabilize," Ishaq said.

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He further emphasized that the flawed policies of successive governments have left Pakistan perpetually dependent on the International Monetary Fund (IMF) for financial aid. Ishaq proposed that the responsibility of budget planning be entrusted to organizations like FPCCI, the Sarhad Chamber of Commerce, ICAP, and the economic wing of the Pakistan Army. He believes these bodies could create a budget that would transform Pakistan's economic landscape.

Malik Meher Elahi, President of the Traders' Association Khyber Pakhtunkhwa, highlighted the dire impact of the current economic crisis, which has affected both the rich and the poor. While the wealthy are managing to cope, the poor are being driven to despair, with some even contemplating suicide. He noted that the business community is on the verge of leaving the country due to the unfavorable economic environment.

Elahi pointed out that the electricity bills have become an overwhelming burden for the people, forcing them to choose between paying their bills or feeding their families. He also criticized the government's agreements with IPPs, arguing that these deals are a major contributor to inflation. He urged the government to reconsider its policies, warning that the country is on the brink of anarchy if corrective measures are not taken.

Small shopkeepers, including Waqas Ahmed, Faraz Jan, and Mudassir Hussain, voiced their frustration over the government's tax policies, particularly the new trader-friendly scheme introduced by the FBR, which imposes hefty annual taxes on shopkeepers. They urged the government to reconsider these policies and recognize the gravity of the situation.

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