KARACHI: Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Friday said oil-producing countries have pushed the world into a serious economic crisis to maximize their profits.

The global economic system and developing countries are under threat as inflation is skyrocketing and millions are getting poorer due to ever-increasing oil prices, he said. Mian Zahid Hussain said that inflation will not be reduced in Pakistan but it will increase making life difficult for the majority.

Talking to the business community, the veteran business leader said that countries producing oil, gas, coal, grain and palm oil etc. have created a supply issue resulting in increased demand which is jacking up prices. On the other hand, freight charges have been increased to the highest level which is fanning the crisis, he added.

He noted that the situation in Pakistan is far from satisfactory as the mafia is also active in many sectors without any fear of law while the situation of exports is not geed despite massive support by the government. Mian Zahid Hussain further said that the price of energy is moving up, IMF has ordered an increase in per unit tariff by Rs1.50 and FBR has increased revenue target by Rs500 billion.

The power sector’s circular debt and capacity payments have become potent threats while there is no sign of a reduction in imports. Investors are facing scarcity of funds as the construction amnesty scheme has not fulfilled the cited objective of low-cost housing but it has sucked capital from the market leaving industrialists high and dry.

Political instability, water scarcity and the new wave of terrorism are also some serious threats that should be tackled properly, he said, adding that the slide of rupee has increased public debt by billions and food prices in the international market is at ten years high threatening masses as Pakistan has become a net food importer.

He noted that SBP is trying to improve the situation by discouraging the purchase of cars and imposing condition of 100 percent cash margin but it has not improved the situation as thought, therefore, it may opt for increasing the interest rates to cool down the economy which will hit jobs. The only option for Pakistan is to boost exports to improve the health of the economy, he said.