KARACHI, Jan 27: The high economic growth rate will not alone solve the problems of poor masses that need jobs and access to basic needs for getting better living conditions. This can not be achieved without receiving fresh local and foreign investment in real sectors of the economy.

These observations were made by business leaders late Friday evening at a dinner hosted by Ijara Financing Inc where a select gathering of cross section of society vent their feelings with regard to current economic conditions and their expected fallout. Diplomats from United Kingdom, Turkey, and several honorary consul generals were also present.

Former president of FPCCI S M. Muneer while appreciating government’s economic policies urged upon the prime minister to have a close look at the crisis confronting textile industry and should also act fast in order to avert any major debacle. He said that undoubtedly the economy had been performing well for the last several years but there was some need to look afresh at some of the developments with regard to high cost of doing business.

Mr Muneer pointed out that high interest rates and utilities charges were crippling the industry in general and textile in particular.

He said that currently the textile industry was ailing and needed urgent government attention “if we do not want to see bank defaults or also want to ensure that we meet our export target of $18.5 billion for current fiscal.”

He observed that the textile industry was not making any profits owing to high POL prices in the world market the increased cost of utilities such as power and gas.

Consequently, he said that while the POL prices in the world market had come down by more than 30 per cent, the government should immediately transfer their benefit to the industry and consumers at large.

Above, all Mr Muneer said that the revenue collection had also going on smoothly.

There was a time when even meagre revenue targets could not be achieved but for the last couple of years collections jumped over Rs500 billion and for current fiscal the revenue collection target is Rs835 billion and hopefully next year it would be Rs1 trillion, he added.

Nevertheless, he cautioned that if the government did not take immediate action to help the crisis-ridden textile industry the export target could not be met. Even last year the country could not meet the target of $17 billion and remained at $16.5 billion.

Former chairman Site Association (SAI) Ikhtiar Baig, who is also honorary consul general of Yemen said that high growth rate could not alone be taken as a surety and indicator of prosperity and well-being of masses. He said that in India the Vajpayee government was the first to achieve a high growth rate of 8.5 per cent but it failed to trickle down and the masses rejected the ruling party.

Even on achieving such a high economic growth rate, he said, India could not reduce poverty, and provide jobs which resulted in a high rate of suicides.

He said,” We should learn from such facts and realities and even though the country have made all-round big achievements on the economic front by increasing per capita income to over $800, getting high remittances, and sizeable foreign direct investment of over $3.5 billion, but again it would be meaningless if we failed to improve the living conditions of masses by providing them jobs.”

About couple of years back, Mr. Baig said the textile industry invested huge amount of $5 billion under BMR but now import of capital goods, as per official figures, had come down as the industry had stopped to expand and modernise its plant and machinery owing to high cost of mark-up.

If the industry does not expand no new jobs would be created and this would also result in less exports. Last year, there was a trade deficit of $12 billion and this year it would swell to $14.15 billion. This will ultimately put pressure on our currency.

Earlier in his address of welcome Chief Executive of Ijara Financing Inc. Farrukh Ansari highlighted the working of the organisation and said that its major role was a go-between banks and creditors and arrange credit line for projects as well as for consumer financing.