Pakistan Urges UAE for $3 billion debt Rollover Amid Economic Crisis
In the throes of a severe economic crisis, Pakistan’s caretaker Minister of Commerce and Industries, Gohar Ejaz, has formally requested the United Arab Emirates (UAE) to consider rolling over its $3 billion debt. Ejaz, a notable businessman, revealed this plea during a recent visit to the UAE for bilateral trade discussions, shedding light on the significant $10 billion investment by Pakistanis in the Gulf state’s real estate sector.
Emotive Appeal Highlights Economic Challenges
During his address at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in Karachi, Minister Ejaz expressed deep emotions as he navigated through the country’s difficult economic phase. He urged contemplation on the circumstances leading to the verge of collapse and pinpointed alleged foul play in the Afghan Transit Trade (ATT) and under-invoicing in Chinese imports as key factors behind the rupee’s sharp depreciation.
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Business Community Called to Action for Economic Resilience
Minister Ejaz implored the business community to break free from under-invoicing and subsidies, emphasizing the importance of research and knowledge-based contributions. He underscored concerns over the trade deficit, rupee depreciation, the low number of active tax filers, anomalies in Afghan Transit trade, external financing dependence, and the insufficient involvement of the business community in policymaking.
China’s Economic Model and Pakistan’s Path Forward
Drawing parallels to China’s economic success, Minister Ejaz urged the business community to actively participate, as China’s foreign exchange reserves exceeded $3 trillion over three decades. In contrast, Pakistan’s reserves barely doubled to $9 billion during the current caretaker government’s tenure.
Collaborative Opportunities for Economic Growth in Karachi
Ejaz invited industrialists in Karachi to collaborate on the development of a new 10,000-acre industrial zone. This initiative aims to relocate industries from China, potentially creating two million jobs. The minister encouraged the business community to triple earnings by contributing to the government’s economic targets.
Assurance of Swift Resolution to Key Economic Issues
Minister Ejaz reassured industrialists that the Special Investment Facilitation Council (SIFC) acknowledged the need to resolve the issue of subsidizing domestic power consumers at the expense of the industry, amounting to Rs.240 billion. He pledged a swift resolution to this matter.
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