Former caretaker federal minister Dr. Gohar Ejaz on Tuesday underscored the need for deep structural reforms and a business-friendly environment to steer Pakistan’s economy toward sustainable growth, while addressing federation presidents and the business community at the Federation of Pakistan Chambers of Commerce and Industry.
Welcoming Interior Minister Syed Mohsin Raza Naqvi, Ejaz termed his arrival at the forum a “landmark,” and highlighted the evolving global role of Pakistan, noting that the country’s standing today was markedly different from what it was three years ago.
Reflecting on past economic efforts, he said that during his tenure, Pakistan had managed to secure financial support from friendly countries, adding that the country had been left with reserves of around $6 billion at the time. “Today, we are standing at $16 billion,” he said, describing the improvement as significant progress.
Ejaz expressed pride in national identity, saying it was an honour to belong to the country and stressing that just as young people serve with passion, the business community must also demonstrate similar commitment toward economic development.
He pointed out that despite progress, approximately $10 billion continues to flow out of Pakistan annually, warning that this trend would only be reversed through the creation of a genuinely business-friendly environment.
Highlighting Pakistan’s demographic strength, he noted that as the fifth most populous country in the world, its economy should rank among the top globally. He also cited World Bank estimates indicating a shortage of 12 million housing units in Pakistan, suggesting that the housing sector alone could contribute up to 5 percent to the country’s GDP.
Ejaz raised questions over regulatory measures, including the imposition of Section 36A, and emphasized that a stable flow of capital within the economy would ensure continued economic activity and growth.
Criticising the cost structure, he said the current pricing of electricity and fuel was difficult to justify, pointing out disparities such as electricity costing around Rs30 per unit compared to fuel input costs of Rs9. He argued that Independent Power Producers (IPPs) had locked the country into an unsustainable cycle.
He further stated that high interest rates remained a major impediment to economic growth, calling them “the root cause of many economic challenges.”
Discussing exports, Ejaz said the vision of achieving $100 billion in exports was shared by both the business community and the government, but stressed that this target could only be realised by rationalising tariff structures and reducing the cost of doing business.
He urged policymakers to prioritise reforms that would enable capital circulation, reduce production costs, and create an enabling environment for businesses to thrive.