2.5 It is also noticed that Pakistani investors are investing huge amount in real estate business in Dubai by entering into joint venture agreement with their local partners which is one of the major factor for flight of capital from the country. There was a boom in the construction industry in the Gulf States in the recent years which have attracted the Pakistani businessmen to avail this golden opportunity at a time when the local economic conditions are not favourable and the industrial sector is passing through economic crisis.
2.6 There is no positive indication for improvement in the power generation and the gap between demand and supply of electricity is increasing day by day. However the Government is not bothered to resolve the energy crisis especially for the unannounced load shedding for long hours which has damaged the industrial sector. The Government has to take corrective measures to correct the situation failing which the position will further deteriorate as more industries will be closed and the people will force to shift their investment to those countries which offer better opportunity for profit earning and return on investment.
2.7 As per article “Aftermath of Energy Crisis” published in Pak Observer, Estimated cost to industry due to energy shortage comes to PKR 230 billion annually besides causing unemployment for 0.4 million people. As per article ‘Poor Governance Deepens Energy Crisis’ published in the daily Dawn, April 16, 2012, estimated annual cost to industry is PKR 240 billion. So in Pakistan the industrial sector is facing an average annual loss of PKR 235 billion per annum.
2.8 The need of the time is that the government should immediately constitute Economic Reforms Committee with active participation from all the stake holders including chambers of commerce, other trade bodies and political parties and formulate short term, medium term and long term strategies to tackle the issues and challenges which are hampering the economic growth.
2.9 In a statement issued by the Mr. Abdul Basit former senior vice president of Lahore Chamber of Commerce and Industries (LCCIs) published in the daily Nation on 3rd July, 2012, he said that the economic slowdown was causing unemployment but also creating law and order situation in the country and the government would have to evolve a well thought out strategy to cope with the situation. He said that in the year 2003 , industrial growth rate was 2.9 % that reached 13.10% in the year 2005 but in the year 2010 , negative growth rate was registered with -3.6%. He feared that the fiscal deficit could touch the staggering figure of RS 1.2 trillion (about 8% of the GDP) if the situation remained the same for quite some time and resultantly the government would have to print billion of rupees that would trigger hyperinflation.
2.10 As already highlighted industrialists have shifted their business to other countries like Bangladesh, China, Dubai, Sri Lanka and India due to worse energy crisis, economic and political instability, and lawlessness situation while a large numbers are planning to shift their industrial business to the other countries because of the prevailing conditions which are not conducive for the carrying out of business in the country. Several countries of the region are on making rapid economic growth while situation in Pakistan is not encouraging. The government has to handle the situation in the best national interest of the country because if urgent measures were not taken it would be great loss to the nation.
2.11 The government is needed to overcome the problems which are hampering the progress especially the energy crisis which is the biggest hurdle in the way of economic growth. Because of electricity shortage the cost of doing business has increased a lot and the business community is facing problems to fulfill their commitments for timely supply of goods. The government is required to involve Pakistani mission abroad to search the market for Pakistani merchandise in the international market. The government has to take such measures on war footing basis failing which Pakistan would become only a trading place instead of manufacturing hub.