ISLAMABAD- Government should find ways and means to reduce its expenditures and balance its budget to ensure macroeconomic recovery.

High fiscal deficit and rapid increase in circular and foreign debts that have doubled in the last three years demand strict fiscal measures and reduction in the non-developmental expenditures should be focused for upcoming budget, Yassar Sakhi Butt, President Islamabad Chamber of Commerce and Industry (ICCI), stated this in a statement.

He said that Finance Minister made commitment in his budget speech every year for restructuring the major Public Sector Enterprises (PSEs), but still no visible plan was in sight to streamline these entities.

President ICCI said that government was spending over Rs.300 billion of tax payers money on inefficient PSEs which is about 1.5 percent of GDP. However, a substantial amount of money should be spent on poor masses by improving education and health infrastructure, he maintained.

He was of the view that phenomenal increase in debt has posed serious challenges and threats to Pakistan’s future. Circular debt has become one of the biggest challenges as cumulative circular debt has risen to Rs.584 billion and was expected to touch Rs.781 billion by the end of the FY11, he observed.

ICCI President emphasized that government should realize that Pakistan cannot afford lavish spending and must take corrective measures to resolve this issue to save the economy.

Yassar Sakhi Butt said that policy makers should think out of the box to resolve the issues pertaining to public sector organizations, adding that good corporate governess and effective monitoring system have to be practiced for smooth running of Public Sector Enterprises.

He proposed that government must find other sources of revenue for better fiscal management and curtail expenditures in the coming budget instead of cutting down development budget.