KARACHI: Central leader of the Businessman Panel and former vice president FPCCI Khurram Sayeed on Tuesday asked the government to accelerate reforms in the power sector which has compromised GDP growth.
The government must take the advice of IMF regarding reforms and privatization of power distribution companies and contain increasing theft, he said in a statement. He said that circular debt has reached to 615 billion which is a big threat to the economy; therefore, it must be settled on priority.
Sayeed said that most of the economic indicators are moving towards right direction, except country’s political temperature, which continues to rise. He said that lower oil prices had made it cheaper for companies to purchase raw materials, operate factories properly, and transport products improving their business performance.
“Government has reduced oil prices which has reduced inflation, improved households budgets enables people to spend their surplus money on other things. The decision of Prime Minister Nawaz Sharif has not only supported masses but also triggered economic recovery,” the leader said.
State Bank should relax monetary policy so that the private sector could get cheap loans which is imperative for economic activity, job creation, and exports. Reserves and rupee are steady, remittances and consumer confidence are high, inflation and the policy rate are in single digits which can hit GDP growth as high as five percent despite the devastation by floods, he added.