By Saleem Shahid
QUETTA: In line with what is happening elsewhere in the country, Balochistan is also in the midst of a serious economic crisis. Perhaps it is also in line with the prevailing trend that officials in Balochistan, particularly the economic managers, are drawing a blank, having little idea, if at all, about how to overcome the crisis. Independent economists, however, are firm in their opinion that the government needs to cut down spending in all sectors to have any chance of winning this tricky war.
“Import of luxury goods – like vehicles, for instance – should be banned forthwith to bring down the import bill,” says Prof Mohammad Sadiq Sarbazi. Likewise, the defence personnel should also fulfill their pledge to reduce spending wherever they can, he adds. “Besides, the government will have to control the law and order situation to improve the confidence of foreign investors in the country,” he concludes.
Balochistan’s leading business leader and industrialist Fazalur Rehman Dittu is of the view that the new government, regardless of the fact that it has inherited most of the problems it is facing today, should reduce utility rates immediately, and bring them at par with other countries of the region. This, he believes, will help enhance country’s production and make Pakistan compete with the rest.
Mr Dittu, a former president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), said the government should pay more attention to increasing agriculture production and, the growers should be given maximum incentives and facilities, like provision of fertiliser and fine-quality seeds. Besides, he favours steps to boost the cotton industry that earns 70 per cent of the country’s foreign exchange.
Balochistan Economic Forum President Sardar Shaukat Aziz Popalzai says the federal government should not take any measures that may disturb the investment climate. The budget deficit and other issues like balance of payments, low foreign exchange reserves and food shortage, he says, shall be dealt with as a short-term emergency. Any long-term harsh measure, he believes, will send negative signals to the investors abroad.
Talking of opportunities, he says that unlike the former government which had given more room to portfolio and service sector investments, the government should now encourage investment in manufacturing and energy sectors.
Former industries minister and a former senior vice-president of the FPCCI Sardar Mohammad Ali Jogezai has a different perception about improving the national economy. He suggests cutting interest rates for making bank loans easy for the growers and industrialists to improve manufacturing, employment and food-related issues.
More power-generating projects and a handle on the worsening law and order situation will enable the government to move forward, he says, adding, however, that the government should be given time to wriggle out of the non-issues that is attracting its attention right now.
Leading business and industrialist Kamaluddin Ahmed is also of the view that the government has received the “gift of inflation, power crisis, budget deficit, wheat and flour crises and price-hike from the former PML-Q government”. However, he is banking on the sitting government’s capacity to “plan properly and move carefully” for a reversal in fortunes. More incentives for Agriculture and Industrial sectors is his idea of the way forward.
For reducing the import bill related to oil, he suggests immediate improvement in the public transport system so that people should feel encouraged to use it for commuting.
http://www.dawn.com/2008/05/11/ebr7.htm
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