Pakistan can become a ‘Mini China’ amid fast urbanization: Punjab CM’s aide

Lahore: Pakistan can become a ‘Mini China’ due to the fastest urbanization in the world, Adviser to Punjab Chief Minister Usman Buzdar on Economic Affairs, Planning and Development Dr Salman Shah said.

“Pakistan can become ‘Mini China’ as it is abundant with young human resources. Young population is swelling and 3 to 4 million youngsters are being added to the work force annually,” he mentioned during a meeting with business community including Lahore Chamber of Commerce and Industry on (LCCI) President Mian Nauman Kabir, former LCCI presidents Mian Shafqat Ali, Sohail Lashari, Zafar Iqbal Chaudhry and Executive Committee members here at Lahore Chamber’s office.

Shah, according to an official statement, maintained that employment generation for these human resources was one of the biggest challenges.

Pakistan, he added, needed to develop urban economy, as the fastest urbanisation in the world was taking place in the country.

The Adviser indicated that the urban economy in Pakistan was growing three times faster than the rural economy. He informed that the Punjab provincial government had formed a policy for solarisation in Punjab and 10,000 to 15,000 megawatts of solar energy will be added to the system during the next two years.

Shah noted that the country needed cheap energy to move economy forward as the energy being produced by the Independent Power Producers (IPPs) was costly. “If we install solar system on canals, it will also help water conservation,” he observed.

Shah recalled that after an end to Vietnam war, the ASEAN countries had made great development. He hoped that an end to Afghan war had brought good opportunities for Pakistan’s economy and become a ‘Mini China’ in the region.

He underscored that the debts had become one third of the Gross Domestic Product (GDP) which was the biggest problem than the current account deficit.

He reminded that the country was paying 3 to 4 billion US dollars in debt servicing. He warned that the debts will continue to rise until our economy is not grown. “To increase the economy we have to increase our exports,” he added.

Shah opined that the delay in the International Monetary Fund (IMF) program will result in further devaluation in rupee and hike in inflation. He claimed that the Punjab government had taken economic strategy to division level. He said that development expenditures of schools in Punjab are Rs 30 billion while annual subsidy of Orange Train is more than this amount.

On this occasion, LCCI President Mian Nauman Kabir contended that the trade deficit in the first five months of the current financial year (July-November 2021) has crossed $20 billion, which was 112 per cent higher as compared to the same period last year.

“The government should take steps for import substitution and bringing diversification in exports through value addition. Furthermore, the export potential of Punjab, especially in the non-traditional sectors of provincial economy needs to be highlighted,” he advised.

He believed that the lack of stability in the exchange rate market was a huge concern for business community as industrial sector is heavily dependent on the imports of raw materials and machinery.

The massive devaluation in the recent years has increased the cost of doing business, he stated. He underlined the need for measures which need to be taken to minimize the volatility in exchange rate market.

Kabir pointed out that the inflation rate had increased to 11.5 per cent in the month of November while the food inflation is touching 12 percent and policy rate has increased to 9.75 per cent, suggesting that the monetary policy should support industrialisation.