The Pakistan Business Council (PBC) has slammed the caretaker government’s “do nothing” approach, saying that it would only increase “informalisation of the economy.”
Taking to social media platform X, formerly known as Twitter, one of the country’s largest corporate advocacy platforms said that among the long list of fundamental reforms required in Pakistan’s economy, some such as privatization/restructuring of State Owned Entities (SOEs) and power distribution companies (Discos), may be beyond the caretaker government’s ambit.
“Of the long list of fundamental reforms required in our economy, some such as privatization/restructuring of SOEs & DISCOS, may be beyond the Caretaker Government’s remit. However, blatant smuggling, under-invoicing, theft of electricity, misuse of the Afghan Transit Treaty, tax evasion by retail, wholesale and the undocumented real estate sectors are all against the law. It is well within the powers of any government (certainly the Caretaker, which has no vote bank to protect) to enforce the writ of the state. A “do nothing” approach does nothing to create a positive sentiment or hope. It only accelerates informalization of the economy. Time to show some teeth,” PBC said.
Of the long list of fundamental reforms required in our economy, some such as privatization/restructuring of SOEs & DISCOS, may be beyond the Caretaker Government’s remit. However, blatant smuggling, under-invoicing, theft of electricity, misuse of the Afghan Transit Treaty, tax…
— The Pakistan Business Council (@ThePBC_Official) September 4, 2023
The comments come days after PBC issued a warning that Pakistan is facing “a perfect storm” because to the continuous rapid depreciation of the rupee versus the US dollar.
Anwaar-ul-Haq Kakar, the country’s interim prime minister, formed a caretaker cabinet last month with the goal of bringing about economic stability in Pakistan as the country waits for new elections.
Days ago, Kakar stated that the interim administration would place a greater emphasis during its brief constitutional mandate on rationalizing expenses, generating money, and developing human resources.
But in light of the rupee’s sharp decline on the open market and the divergence of dollar inflows to the informal markets, its perceived inaction has drawn criticism.
