Sticky situation.

Majyd Aziz: I am an industrialist and businessman. Presently, I am the President of Global Compact Network Pakistan. I am the former President of the Employers Federation of Pakistan, South Asian Forum of Employers, and Karachi Chamber of Commerce and Industry, the former Chairman of SITE Association of Industry, and a former Member Board of Directors of Zarai Taraqiati Bank Ltd, KESC, and SITE Limited.

I was Chairman of the Board of Directors of SME Bank Limited. I am a Senior Advisor for Pakistan for Transnational Strategy Group, Washington. I am also Secretary General of the English Speaking Union of Pakistan, besides being Founding Chairman of Pakistan Sri Lanka and Pakistan Indonesia Business Forums and was Founding Secretary General and Vice Chairman of Pakistan Japan Business Forum.

PAGE: How would you comment on the current state of the economy of Pakistan?

Majyd Aziz: Frankly speaking, the decision-makers are up the creek without a paddle. There is no end to the deteriorating situation in Pakistan. SBP jacks up interest rates and claims that it would curb inflation. Exports are diving south, while substantial official remittances have switched to Hawala and Hundi because of the favourable rates in the grey market. Industries are not operating at full capacity (check the reduced number of workers going in or coming out of factories). Unemployed workers are ready to work at less than minimum wage. There is an unstoppable exodus of talent and brains to foreign lands and this is negatively impacting the IT sector.

The dwindling Rupee has become a matter of serious concern for all, especially industries that require imported inputs. All signs point towards a deluge of disaster and it would perhaps take three or more years to stabilize the economy. Of course, banks are making windfall profits but these are primarily due to the interest received on loans to the government.

Every week minister or government official comes on media and talks about this reform or that reform, this strategy or that strategy, this vision or that vision. The private sector is seldom consulted, and hence the business community takes each pronouncement with a pinch of salt and a hearty guffaw. They have heard it before ad nauseam.

The private sector is well aware that the government has no pragmatic vision to extricate the nation from the shattered economy. The only route available for the government is to tax the already taxed. Moreover, with each passing day...