Karachi, October 24, 2023 – The Union of Small and Medium Enterprises (UNISAME) has proposed that Pakistan should adopt similar measures to those undertaken by Sri Lanka to address its ongoing economic challenges.
In a meeting with an anonymous financial expert, UNISAME emphasized the need for Pakistan to learn from Sri Lanka’s strategies to recover from a technical default.
Zulfikar Thaver, President of UNISAME, commended the remedial actions taken by Sri Lankan experts, particularly their commitment to austerity and a reduction of all expenditures by half. Notably, these measures have led to the appreciation of the Sri Lankan currency and signs of economic recovery.
UNISAME’s Council members expressed their concerns about Pakistan’s reluctance to cut expenses, despite the need to address its economic difficulties. They stressed the importance of closing down organizations and institutions that are incurring losses, revisiting the budgets of public sector entities, and addressing issues such as financial leakages, pilferages, and excessive spending on purchases and perks.
In their view, a nation burdened with debt and struggling to meet loan repayments cannot afford to squander resources on foreign trips with large delegations or visits without a clear and necessary agenda. They recommended that only essential trips should be considered to save resources for more critical purposes.
Furthermore, UNISAME proposed that Pakistan should limit imports to essential raw materials and take initiatives to manufacture products such as solar panels, mobile phones, and vehicle engines domestically. This approach would reduce the country’s reliance on imported goods, thereby easing the financial strain caused by excessive imports.
In addition, UNISAME suggested the cultivation of crops like pulses and tea to decrease dependence on imports of these products. By promoting domestic manufacturing and agriculture, Pakistan can lessen the burden of imports and make progress towards self-sufficiency.
The lessons from Sri Lanka, with its journey towards economic recovery and financial stability, are regarded as a valuable blueprint for Pakistan to consider. The adoption of similar measures in Pakistan could potentially lead to a more resilient and self-reliant economy, as well as reduced reliance on foreign aid and debt.
UNISAME’s recommendations underscore the urgency of addressing Pakistan’s economic challenges and the need for prudent fiscal measures to mitigate the impact of the ongoing financial crisis. As the nation navigates these challenges, it is hoped that implementing strategies akin to those undertaken by Sri Lanka will contribute to Pakistan’s economic recovery and long-term financial stability.
