According to the experts the GDP growth rate is low because
new investment is scanty, balancing, modernization and replacements are
virtually nonexistent. To be honest the existing units face declining capacity
utilization, which is leading to closure of the productive facilities.
The ruling regime often take pride in saying, ‘Pakistan is
one of the best performing market’. The reality is around 500 companies are
listed at the local stock exchange and only a small number of new companies
listed is the last one decade. Banks are thriving because of huge investment in
the government securities, exploration and production companies make fortune
due to high international prices of crude oil, fertilizer plants are working
below optimum capacity utilization, country imports huge quantity of refined
products because of dismal capacity utilization and the list can continue.
To overcome budget the government has imposed huge taxes on
each and every product, including lifesaving drugs and food items. Imposition
of petroleum development levy increases power generation cost as well as
transportation and logistics cost. High electricity and gas tariff encourage
theft, which is evident from ballooning circular debt.
Over the last three years no effort has been made to contain
expenditures, which prompts the government to borrow more, to be honest the
government borrows to pay off the debt.
To conclude the government is creating new entities, which
promise bringing in huge investment. One fails to understand if the existing
industries are closing, local entrepreneurs and educated people are leaving the
country, why should foreigners select Pakistan as an investment destination?
The rulers must remember actions talk louder than words.
