Islamabad: Shahid Rasheed Butt, a business leader and former president of the Islamabad Chamber of Commerce, has highlighted the initial positive impact of recent government reforms on the country’s economic outlook. According to Islamabad Chamber of Commerce and Industry, these measures, implemented under the International Monetary Fund programme, have started to stabilize the economy, with projections suggesting a potential increase in Pakistan’s GDP growth by up to 0.5 percentage points this year.
Butt noted that while key economic indicators, such as inflation and interest rates, have improved, these gains come amid persistent challenges, including high energy prices and increased taxes. He emphasized that these factors continue to exert pressure on both consumers and businesses, threatening to undermine the early signs of economic recovery.
To sustain the positive trajectory, Butt argued for the need to enhance private-sector investment and create a more supportive business environment. He suggested that reducing borrowing costs might stimulate credit demand, thereby fostering broader economic activity.
Although the government has provided some relief to the textile industry, Butt pointed out that these efforts are insufficient to counteract the pressures from rising input costs and increased taxation. He warned that without more comprehensive support, the industry’s competitiveness and potential for job creation could be jeopardized.
Butt concluded by urging policymakers to address the ongoing issues of high power and gas prices, as well as to reconsider the current tax structure. He advocated for the introduction of targeted incentives for industry, stating that such measures are critical to ensuring that the benefits of economic recovery are more widely shared and that growth remains sustainable and inclusive.
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