By Asad Cheema
ISLAMABAD: Former President of Islamabad Chamber of Commerce and Industry (ICCI) Dr. Shahid Rasheed Butt on Friday said the current economic model is very flawed and based on elitism which can bankrupt the country but will never allow it to develop.
Unnecessary imports and not used by people but by the elite which wastes foreign exchange while the burden of debt falls on the poor, he said.
Shahid Rashid Butt said that no government wants real development but strives for artificial development which continues to damage the economy for decades.
Every attempt made for artificial development for the sake of popularity results in huge deficits and crises, after which the country is saved by borrowing from external sources, he observed.
The business leader said that reckless consumption is on the rise in the country, unnecessary imports are being encouraged and investment in savings the productive sectors has been made almost impossible.
The focus of the entire country is on the property market and trading while few would opt for the industry.
Many capitalists get cheap loans in the name of industrial expansion but they invest part of such loans in the property market for good He warned that as long as imports continued unabated, the demand for dollars in the country will continue to increase and the rupee will stay weak.
Governments ignore the ground realities and try to ensure better growth
rate, lower inflation and rupee stability by borrowing but reforms are
ignored which results in a crisis every two to three years.
Shahid Rashid Butt said that the policy of SBP to keep the rupee stable by
selling dollars instead of exports and investments is destructive and has
been followed for decades.
He lamented that IMF has called for several more measures, including
deregulation of petroleum prices, which could delay the repayment of loan
instalments until August, which would have a negative impact on the economy;
therefore the lender should reconsider its demands.
