Absence of economic direction biggest threat to the economy: FPCCI

The Federation of Pakistan Chamber of Commerce and Industry (FPCCI) on Tuesday asked the government to take steps to improve the economic situation for which future economic direction should be the first step.

Seventy years into its life our economy has seen many changes but it still remains without a direction which is the bigger problem than energy crisis, law and order situation and current dollar crisis, it said.

Many policies are incoherent; there is lack of coordination among different ministries while lack of trust can be observed among the business community and important officials, said Atif Ikram Sheikh, Chairman FPCCI Regional Committee on Industries.

In a statement issued here today, he said that policies regarding education, labor and industry are disordered as around two million youth join labor market every year with no opportunities for employment which is a grave threat.

Developed nations plan for decades and centuries while we are busy in day to day affairs which has deprived the country of opportunity to face challenges is the fast changing world, he added.

Atif Ikram Sheikh said that an estimate suggests that the US and EU may not require textile imports in ten to twelve years as robots will be doing the job which may hit the economies of Pakistan, India, Bangladesh, Vietnam, and China.

Our government wants to reduce unemployment, boost forex reserves, and end dependence on foreign loans but at the same time trading is preferred over the industry which is shrinking at a fast pace, he said, adding that real estate and stock market continue to suck major chunk of the investment.

He said that the prices of residential plots are more than the price of industrial plots in some areas of Karachi, the economic capital of Pakistan which indicates the frustration and disappointment of the reeling industrial sector.  

Government prefers exports, competitiveness, and innovation over health, education, and sanitation which are amazing, he said, adding that the countries that won independence long after Pakistan preferred to set their future economic direction but we have failed in it.