Economic Expert Urges Privatization to Curb Losses

ISLAMABAD: Shahid Kardar, the former Governor of the State Bank of Pakistan (SBP), voiced concerns on Wednesday regarding the economic strain caused by state-owned enterprises and emphasized the necessity of privatization. He stated that these enterprises incur approximately Rs 1 trillion in losses annually, impacting the national treasury.

During a discussion entitled “Numbers and Beyond Budget 2025-26,” Kardar highlighted the critical need to manage the financial drains from SOEs. He suggested that these substantial resources could be redirected towards sectors with the potential to stimulate economic progress. He also noted that ongoing international tensions, such as the Iran-Israel conflict, have further decreased Pakistan’s investment attractiveness.

Economist Dr. Manzoor Ahmad described the budget as a distinctive fiscal measure due to its significant subsidy reductions. He believes this approach has provided the economy with some relief and advised the government to sustain these policies to enhance the nation’s export capabilities.

The event, presided over by Barrister Danyal Chaudhry, Parliamentary Secretary for Information and Broadcasting, and co-organized by Dr. Nafeesa Shah, MNA, and Sher Ali Arbab, gathered economists, senators, and provincial representatives to discuss fiscal priorities.

Provincial Fiscal Autonomy Highlighted

In his main address, Barrister Chaudhry stressed that provincial fiscal independence is crucial for national advancement, highlighting that economic expansion requires financial management and responsibility. He asserted that empowering provinces to manage their resources independently and adopt careful fiscal strategies is key to achieving genuine progress.

Benazir Hunarmand Program Launched

Senator Rubina Khalid, Chairperson of the Benazir Income Support Programme (BISP), announced the introduction of the Benazir Hunarmand Program (BHP) as a well-timed and strategic effort to tackle Pakistan’s increasing employment issues and create economic opportunities for underserved communities.

Emphasizing the importance of skills enhancement, she noted that Pakistan urgently requires initiatives that offer sustainable solutions, particularly for marginalized groups, given its growing young population and limited job prospects.

BHP Aims for Self-Reliance

“BHP is more than just a training program; it’s a route to dignity, self-sufficiency, and respectable employment. By providing low-income families with skills that are competitive and relevant to the market, we are making investments in their future and the nation’s economic advancement,” she commented. She elaborated that the initiative seeks to train BISP beneficiaries and their relatives in skills that align with both local market demands and global opportunities, particularly in sectors like construction, healthcare, hospitality, and information technology. A primary goal is to prepare participants for job openings in Gulf Cooperation Council (GCC) countries and other regions.

Karachi’s Challenges Addressed

Former Sindh Governor Zubair Umar drew attention to Karachi’s contradiction, noting that despite contributing 70% of the national revenue, it is ranked as one of the least livable and most dangerous cities globally. He urged immediate intervention from the federal government to address the obstacles hindering the resolution of Karachi’s issues, warning that the situation is deteriorating daily.

Agrarian Distress Discussed

Mian Umer Masood, president of the Kissan Association, passionately addressed the distress in the agricultural sector, pointing out that a small bottle of water now costs more than milk, reflecting the dire state of agriculture. He insisted that the government must urgently resolve the crises faced by farmers to avert a potential severe food shortage.