A prominent business leader has warned that 70 million people are now living below the poverty line in a country of 240 million, indicating a severe crisis of purchasing power destruction and rising inequality, which negates official claims of economic stability.
Shahid Rasheed Butt, a well-known businessman and former president of the Islamabad Chamber of Commerce, stressed in a statement that although there are signs of improvement in the current account and overall economic balance, the real income of the public is continuously declining and unemployment is intensifying.
He clarified that the financial capacity of a large segment of the population has almost been exhausted, which is having a negative impact on the wider economy and is a serious challenge for national economic policy.
Mr. Butt attributed the decline in agricultural income to the effects of climate change, recent floods, and general uncertainty. Concurrently, rampant inflation in urban centres and a slowdown in industrial activities have increased pressure on the middle class, causing this segment to shrink rapidly.
The decrease in real income and persistent inflation have made essential expenditures such as education, health, and food increasingly difficult for many households. This has led to a decrease in consumer demand, causing stagnation in local markets and forcing small and medium-sized enterprises (SMEs) to reduce their workforce due to rising costs and poor sales.
He stressed that economic policy must shift from a narrow focus on short-term stability to promoting long-term, inclusive growth. The business leader warned that without a substantial increase in both industrial production and agricultural income, it would be impossible to reduce unemployment or alleviate social pressures.
Mr. Butt concluded that sustainable economic stability is unattainable without reducing national debt, broadening the tax base, and restoring private sector confidence, warning that further delays in necessary reforms could prove disastrous.