Summary
- Prominent investor Arif Habib has said that he does not expect an immediate improvement in Pakistan’s economic conditions despite recent government measures.
- He also said the government consulted stakeholders during the budget process.
- Meanwhile, Gul Ahmed Textile Mills Director Ziad Bashir said the government has done what it could under current economic conditions.
Prominent investor Arif Habib has said that he does not expect an immediate improvement in Pakistan’s economic conditions despite recent government measures. He also said significant investment inflows are unlikely in the short term.
He shared his views during a post-budget discussion on the economic situation. He said high energy costs remain a major barrier for investors. He added that elevated tax rates are also discouraging investment in the country.
Arif Habib stressed that the government should consider abolishing the super tax. He said lack of investment is directly affecting employment generation across the country.
He further said exports can only improve if energy prices and taxes are reduced further. According to him, such adjustments are necessary to improve competitiveness in global markets.
He acknowledged that the government has some fiscal space for reforms. However, he noted that Pakistan’s tax-to-GDP ratio is still not improving at the required pace. He said the International Monetary Fund has repeatedly raised this concern.
He also said the government consulted stakeholders during the budget process. Some relief was provided to salaried individuals and exporters. He added that the government has also supported the construction sector.
However, he questioned how quickly these steps will translate into real economic improvement.
Meanwhile, Gul Ahmed Textile Mills Director Ziad Bashir said the government has done what it could under current economic conditions. He said efforts have been made to stabilize the economy.
He pointed out that value addition in industry is still not receiving enough attention. He also highlighted a decline in rail freight usage, which has fallen below five percent.
He said more focus has been given to road infrastructure while the railway system has been neglected.
Ziad Bashir further said Pakistan lacks efficient direct port infrastructure for shipping. He warned that without addressing these structural issues, it will remain difficult for Pakistan to compete in global markets.
He emphasized that long-term economic stability depends on improving infrastructure, reducing costs, and strengthening export capacity.
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