Caretaker govt’s ‘do nothing’ approach doing no good for Pakistan: PBC

The Pakistan Business Council (PBC), one of the country’s largest corporate advocacy platforms, on Monday slammed the caretaker-government’s “do nothing” approach, saying that it would only increase “informalisation of the economy.”

Taking to social media platform X, formerly known as Twitter, it said that among the long list of fundamental reforms required in Pakistan’s economy, some such as privatization/restructuring of State Owned Entities (SOEs) and power distribution companies (Discos), may be beyond the caretaker government’s ambit.

“However, the blatant smuggling, under-invoicing, theft of electricity, misuse of the Afghan Transit Treaty, tax evasion by retail, wholesale and the undocumented real estate sectors are all against the law,” said PBC.

“It is well within the powers of any government (certainly the caretaker, which has no vote bank to protect) to enforce the writ of the state,” it added.

The advocacy body stated that a “do nothing” approach does nothing to create a positive sentiment or hope. “It only accelerates informalisation of the economy.”

“Time to show some teeth!” it exclaimed.

The remarks come days after PBC warned that the ongoing rapid decline of rupee against the US dollar is “a perfect storm” for Pakistan.

Last month, Pakistan saw a caretaker cabinet under interim Prime Minister Anwaar-ul-Haq Kakar, which is primarily responsible for running the country until fresh elections, to lead Pakistan towards economic stabilisation.

Days ago, Kakar said that the interim government would focus more on rationalising the expenditures, generations of revenue, and development of human resources during its short constitutional period.

However, its perceived inaction has prompted criticism at a time when the rupee has fallen drastically in the open market, contributing to the divergence of dollar inflows to the informal markets.