Former Vice President of FPCCI Atif Ikram Sheikh on Sunday said the share of manufacturing in the GDP is declining which is creating serious problems.
The country cannot progress unless manufacturing is given top priority, he said. Atif Ikram Sheikh said that a large portion of capital is going to non-productive sectors, which is benefiting a few whiles affecting the economy and masses.
The business leader said that improved production, exports, and employment opportunities will remain a dream unless manufacturing is made more profitable than other non-productive sectors.
Atif Ikram Sheikh who has also served as Chairman PVMA said that investment in manufacturing can be lured to reduce dependence on imports, cut the deficit and tackle unemployment.
He noted that the share of manufacturing in GDP has been declining by an average of 0.1 percent every year for decades. Manufacturing accounted for 15 percent of the GDP in the 90s, which has now fallen to 11 percent and is declining further at a worrying pace.
He further said that too much dependence on imports in absence of good manufacturing leads to a trade deficit and if the trade deficit continues to rise, then the balance of payments deteriorates, which results in debt.
The situation has reached the point that every government that comes to power has to start its tenure with the IMF program. The government borrows and announces that this is the last loan but soon it has to borrow again to save the country from bankruptcy.
The country that cannot control its spending and violates financial discipline invites IMF to rule it, he said. NNI