FPCCI Creates ‘National Economic Think Tank’ – Business & Finance

KARACHI: The Federation of Pakistan Chambers of Commerce (FPCCI) on Saturday announced the formation of a ‘National Economic Analysis Team’ to look into the country’s economic challenges.

Former interim commerce minister Gohar Ejaz said this at a press conference organised at Federation House along with United Business Group chief SM Tanveer and FPCCI senior vice-president Saqib Fayyaz Magoon, revealing that former interim prime minister Anwaar ul Haq Kakar will serve as the president of the National Economic Development Institute, former interim finance minister Shamshad Akhtar will be the chief executive officer and Bashir Jan Muhammad will be its chairman.

Gohar Ejaz said that due to the lack of policy continuity, the economy is facing serious challenges. As per Vision 2030, the target is to increase exports by $100 billion annually at a growth rate of 10%. He stressed that the approach now should be to repay loans through business activities and not to borrow more.

He mentioned receiving threats since the action against the IPPs (Independent Power Producers). While the Special Investment Facilitation Council (SIFC) is there to provide facilities, it is the business community that is responsible for raising dollars. Ejaz stressed that the current electricity prices are unaffordable for the public and all sectors and the 40 IPP owners have considerable power.

He noted that improving Pakistan’s economy in the current circumstances is akin to jihad. The think tank aims to progress with the participation of all stakeholders, which will also lead to increased exports. The National Economic Think Tank consists of 40 experts.

He stressed that 11 years ago, Pakistan’s exports were $23 billion, and in 2023, they would be only $27.5 billion. If exports grew by 10% annually, they would reach $60 billion in 10 years.

He added that the think tank will have a chair for each sector, including law, health, trade and others.

He expressed pride in the country’s armed forces. United Business Group chairman SM Tanveer, during his speech, noted that the country’s economy needs to move forward. They have been raising the issue of IPPs for the last three months and people are now convinced that work is underway on the issue.

He expressed hope that the issues related to IPPs would be resolved this month, emphasising the need to provide electricity at a rate of Rs 25 per unit.

Tanveer reiterated his commitment to improving the economy and putting Federation House on the right track. He mentioned that there should be a single economic policy that will be implemented by any future government. He stressed that only the business community can improve the economy and not the political leaders.

He called on politicians to come forward and sign the economic charter, stating that it often happens that some industries go bankrupt shortly after they are established.

Former caretaker finance minister Shamshad Akhtar said the aim is to set up an autonomous institution that identifies national issues, including experts from every sector. Best practices from different countries will be studied. The state should not be too involved; instead, there should be public-private partnerships.

She stressed the need for policies that will attract investment into the country. She also mentioned that the improving economic situation has led to falling interest rates. The world does not run on subsidies alone; instead, the focus should be on incentives, which are among the best-designed systems in the world.

Akhtar added that in addition to government data, private sector data will also be needed. Pakistan has gone through many difficult phases with many causes, but political instability is a major problem. She also stressed that better corporate governance is essential for running a business. While IMF assistance can help with the balance of payments, it does not solve economic crises; economic analysis and cooperation with the business community are necessary for this.

Prominent industrialist Bashir Jan Muhammad praised Gohar Ejaz’s efforts in solving the electricity problem, noting that the high cost of electricity was the biggest problem for Pakistani trade and industry.

FPCCI Senior Vice President Saqib Fayyaz Magoon stressed that Pakistan is currently facing several economic challenges, the most important of which are the energy crisis and IPPs. He noted that exports are declining and while the Prime Minister has focused on ports and shipping, progress has been very slow. He called for a long-term 30-year economic plan as 5- or 10-year plans are not enough to stabilize the economy.