Eduction in inflation rate to nine-year low hailed

ISLAMABAD, MAR 5 (DNA):The Chairman of National Business Group Pakistan, the President of the Pakistan Businessmen and Intellectuals Forum, the President of All Karachi Industrial Alliance, the Chairman of the FPCCI Advisory Board, and the President and former provincial minister, Mian Zahid Hussain, said on Wednesday that the inflation rate in Pakistan has dropped to a nine-year low, which is a credit to the current government.

He said that last month, the inflation rate was 1.5 percent, compared to 2.4 percent in January.

Mian Zahid Hussain said that according to the official statistics, the inflation rate in urban areas was 24.9 percent in February last year, which has decreased significantly.

Talking to the business community, the veteran business leader said that although inflation in the country is at its lowest since September 2015, the people’s financial condition is not what it was then.

The business leader said that the trend of decreasing inflation is continuing, and soon, the State Bank is likely to reduce interest rates, which will positively impact the economic situation.

Mian Zahid Hussain said that the government’s indicators show a decrease in the rate of price increase. However, the decrease in inflation is insufficient because electricity bills are still out of the people’s reach.

He underlined that reducing electricity and gas prices is also necessary. The people’s purchasing power has also been exhausted. They have been facing inflation and income decline for many years, so something should be done to relieve them.

He said the Ramadan package of Rs 20 billion by the federal government and Rs 30 billion by the Punjab government is commendable.

Despite the decrease in the trend of increasing prices of goods, people are deprived of the ability to buy necessities of life because they are stuck in a purchasing power crisis.

He said that to increase the purchasing power of the masses, new employment opportunities must be created, and for this, business activities must be increased.

Reducing electricity and gas tariffs and tax rates while increasing taxes and broadening the tax base is necessary to increase business activities.

In addition, cheap loans to industrialists and farmers are necessary. Mian Zahid Hussain said that the country’s textile sector, which has the highest exports and is the second-largest employment-producing sector, is in crisis.

Over one hundred units have been closed, while many run at half capacity. In addition, many industrial sectors face difficulties that need immediate attention.

Mian Zahid Hussain said that when businesses start, the people will get employment, and the government will get revenue.

He said that the industrial and export sectors are facing difficulties, electricity and gas tariffs are skyrocketing, and the tax system is anti-investment. Therefore, it will become impossible to run the country without debts.

Mian Zahid Hussain further said that if business conditions are not improved, the tax shortfall, which is currently Rs. 604 billion, will increase further.