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Islamabad, Former President of the Islamabad Chamber of Commerce and Industry (ICCI), Dr. Shahid Rasheed Butt, criticized the current economic conditions in Pakistan, stating that they disproportionately benefit influential businesses while burdening individuals and small traders. He highlighted the imbalance in the economic policies that favor large corporations and banks, resulting in significant profits for them, while small businesses and the general populace face hardships.
According to Islamabad Chamber of Commerce and Industry, Dr. Butt remarked that under the ongoing International Monetary Fund (IMF) program, the economic burden has been unfairly placed on the general population, with wealthy individuals and businesses largely exempt from the brunt of these measures. He criticized the IMF’s satisfaction with Pakistan’s increased tax collection, attributing it to unsustainable inflation rather than the efficacy of any governmental department.
Dr. Butt pointed out the stark contrast in economic fortunes between large corporations and the general public. In the months of July, August, and September, the corporate sector reportedly earned a record-breaking 417 billion rupees, with banks alone profiting 149 billion rupees. Meanwhile, almost all listed companies, including those in the cement, fertilizer, and automobile industries, reported substantial profits, which were unprecedented in the past two years.
These companies distributed profits totaling 97 billion rupees to shareholders, with banks contributing 51 billion rupees, a 13% increase from the same quarter the previous year. This, Dr. Butt argued, starkly contrasts with the plight of the majority, who are grappling with severe inflation.
Dr. Butt also noted the 24% increase in tax collection, which prompted IMF approval. However, he attributed this increase to inflation rather than effective fiscal policies. He criticized the government’s approach to managing the economy, which he believes places an undue burden on low-income individuals.
The former ICCI president also expressed concern over the underperformance of the export sector, restrictions on imports, and the struggles of the health and education sectors. He questioned the effectiveness of the government’s fiscal policies, which have produced a minimal surplus in the primary balance but at a significant cost to the population.
Dr. Butt concluded by arguing that the current policy of attempting to improve the economy by overburdening the poor and small businesses is unsustainable and has repeatedly failed to yield positive results.
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