Prime Minister’s move to restructure SOEs lauded

Islamabad, November 23, 2020 (PPI-OT): The Pakistan Economy Watch (PEW) on Monday lauded to move of the Prime Minister Imran Khan to restructure state-run companies which are inflicting losses to the tune of trillions. In case of success, the government will save hundreds of billions of rupees being spent to keep these institutions artificially alive, it said.

Pakistan cannot progress unless it strikes a balance between income and expenditures for which tackling failed companies is necessary, said Chairman Pakistan Economy Watch Brig. (retd) Aslam Khan. He said that loss-making entities are getting more funds than being spent on defence of the country while all the money is going down the drain which cannot be justified.

Almost all the governments over the last forty years have tried to turnaround SOEs or sell them but the experience of privatization has left much to be desired. Therefore, now the Prime Minister has decided to introduce a mixed ownership model by dividing these companies into smaller companies and appoint their management on merit.

He informed that there are about 200 SOEs in Pakistan having an impressive assets base but their only contribution is the employment of half a million people at a staggering loss to the national exchange. Their mismanagement and operational inefficiencies have touched unimaginable heights. They have been causing heavy losses to the national exchequer in the shape of subsidies, bailout package and financial assistance.

For more information, contact:
President
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad
Tel: +92-51-2510375
Fax: +92-51-2802449
Cell: +92-321-5157671
Email: president@pakistaneconomywatch.com
Web: www.pakistaneconomywatch.com

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India fighting a losing battle against CPEC: Dr. Murtaza Mughal

Islamabad, November 23, 2020 (PPI-OT): The Pakistan Economy Watch (PEW) on Saturday said India is digging its grave by opposing the multi-billion dollar project CPEC which has become a reality. Conflicting this project amounts to committing suicide, therefore, India should become part of it or become unconcerned towards it, it said. The conspiracies by Modi administration cannot dent Pak-China friendship and increased economic cooperation, said Dr. Murtaza Mughal, President PEW.

Damaging a sixty billion dollar project by allocating sixty million dollars for terrorist activities is a dream which will never come true, he added. Dr Murtaza Mughal said that India is not only dancing on the tune of some global powers but it is also against increased Chinese presence in Pakistan which will deprive her of opportunity to attack our country.

Chinese presence in Gwadar will secure our seas while the CPEC route will foil her unholy designs in Gilgit-Baltistan helping Pakistan to allocate status of a province to that important region. The project will bring all the countries in the region closer and help them develop rapidly while India blinded by the enmity of Pakistan will be left alone, he observed.

He noted that China has finalised a deal with Iran which has wasted billions of dollars on Indian investment and now India is trying to settle the score with China for its humiliating defeat in Ladakh on Pakistani soil. We must realise that the success of CPEC is linked to the prosperity of Balochistan therefore no stone should be left unturned to bring this province in the national mainstream, he demanded.

For more information, contact:
President
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad
Tel: +92-51-2510375
Fax: +92-51-2802449
Cell: +92-321-5157671
Email: president@pakistaneconomywatch.com
Web: www.pakistaneconomywatch.com

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India digging its grave by opposing CPEC

Islamabad, November 20, 2020 (PPI-OT): The Pakistan Economy Watch (PEW) on Friday said India is digging its grave by opposing the multi-billion dollar project CPEC which is a reality. Conflicting this project amounts to committing suicide, therefore, India should become part of it or become unconcerned towards it, it said. The conspiracies by Modi administration cannot dent Pak-China friendship and increased economic cooperation, said Dr. Murtaza Mughal, President PEW.

Damaging a sixty billion dollar project by allocating sixty million dollars for terrorist activities is a dream which will never come true, he added. Dr Murtaza Mughal said that India is not only dancing on the tune of some global powers but it is also against increased Chinese presence in Pakistan which will deprive her of opportunity to attack our country.

Chinese presence in Gwadar will secure our seas while the CPEC route will foil her unholy designs in Gilgit-Baltistan helping Pakistan to allocate status of a province to that important region. The project will bring all the countries in the region closer and help them develop rapidly while India blinded by the enmity of Pakistan will be left alone, he observed.

He noted that China has finalised a deal with Iran which has wasted billions of dollars on Indian investment and now India is trying to settle the score with China for its humiliating defeat in Ladakh on Pakistani soil. We must realise that the success of CPEC is linked to the prosperity of Balochistan therefore no stone should be left unturned to bring this province in the national mainstream, he demanded.

For more information, contact:
President
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad, Pakistan
Tel: +92-51-2510375
Fax: +92-51-2802449
Cell: +92-321-5157671
Email: president@pakistaneconomywatch.com
Web: www.pakistaneconomywatch.com

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Cotton crop failure to cost $10 billion

Islamabad, November 16, 2020 (PPI-OT): The Pakistan Economy Watch (PEW) on Saturday said the failure of the cotton crop will cost ten billion dollars to the country. The cotton production stands at five million bales against the target of fifteen million bales which will require import of ten million bales, it said. Cotton import is necessary to keep the textile sector running, therefore, all the taxes and duties should be waived, said Dr. Murtaza Mughal, President PEW.

He said that the government should resolve the issues confronting the cotton sector and discourage trend among farmers to switch to sugarcane crop. Dr. Murtaza Mughal said that licences should not be issued for new sugar mills as the production is already more than required and area under cultivation for cotton should be increased. He said that Pakistan used to import LNG at much lower prices during 2017 and 2018 than now despite the fact that now international prices are depressed which were normal a few years ago.

Most expensive gas import contracts have been finalised at rates ranging between 16 to 18 percent of Brent crude while the gas purchased through the long-term supply arrangements by the previous government was around 13 percent. The government should not buy costly LNG as it will hit the industrial sector and exports, he said.

For more information, contact:
President
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad
Tel: +92-51-2510375
Fax: +92-51-2802449
Cell: +92-321-5157671
Email: president@pakistaneconomywatch.com
Web: www.pakistaneconomywatch.com

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Government importing costly LNG

Islamabad, November 16, 2020 (PPI-OT): The Pakistan Economy Watch (PEW) on Sunday said the government is importing costly gas which will hit masses and industrial sector. Expansive gas will add to the problems of masses and the dejected business community while it will double the volume of the circular debt in the gas sector, it said. Expensive gas import contracts have been finalised at rates ranging between 16 to 18 percent of Brent crude while the gas purchased by the previous government was around 13 percent, said Dr. Murtaza Mughal, President PEW.

He said that the former government purchased gas at a lower price despite stable market but now it is being purchased at a higher cost when the market is down which is amazing. He noted that the failure of the cotton crop will cost ten billion dollars to the country. The cotton production stands at five million bales against the target of fifteen million bales which will require import of ten million bales, it said.

Cotton import is necessary to keep the textile sector running, therefore, all the taxes and duties should be waived. He said that the government should resolve the issues confronting the cotton sector and discourage trend among farmers to switch to sugarcane crop.

Dr. Murtaza Mughal said that licences should not be issued for new sugar mills as the production is already more than required and area under cultivation for cotton should be increased. He said that Pakistan used to import LNG at much lower prices during 2017 and 2018 than now despite the fact that now international prices are depressed which were normal a few years ago.

For more information, contact:
President
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad
Tel: +92-51-2510375
Fax: +92-51-2802449
Cell: +92-321-5157671
Email: president@pakistaneconomywatch.com
Web: www.pakistaneconomywatch.com

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Government has realised negative impact of subsidies

Islamabad, November 16, 2020 (PPI-OT): The Pakistan Economy Watch (PEW) on Monday lauded Prime Minister Imran Khan for taking note of the wastage of precious resources in the name of subsidy. The government is doling out an annual subsidy of Rs 4 trillion which is not affordable therefore this practice should be stopped without delay, it said.

How come Pakistan afford to waste 4.5 percent of its GDP to please influential which is not possible for many developed nations, said Chairman Pakistan Economy Watch Brig. (retd) Aslam Khan. He said that many countries have the subsidy regimes to benefit masses but we have a very flawed system which benefits influential involved in energy, industry and agriculture sector while masses get a very insignificant share of the subsidies.

Aslam Khan said that subsidies are also used to keep inefficient and corrupt enterprises running on the cost of poor which include PIA, Railways and Pakistan Steel Mills etc. Subsidies add to the money and influence of the superior businessmen who then use their power to skin masses as evident from the continued food crisis, he observed.

The mafia is plundering masses while the regulators are weak enough to play the role of silent spectators, therefore, the government must spring into action after realising the wastage of scarce resources. He noted that all of the successful countries have reversed unnecessary subsidies and subjected their commodities and utilities to market dynamics resulting in price stability and an end to shortages and hoarding.

For more information, contact:
President
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad
Tel: +92-51-2510375
Fax: +92-51-2802449
Cell: +92-321-5157671
Email: president@pakistaneconomywatch.com
Web: www.pakistaneconomywatch.com

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Artificial food crisis transferring trillions from poor to rich

Islamabad, November 09, 2020 (PPI -OT): The Pakistan Economy Watch (PEW) on Saturday said trillions have been transferred from the pockets of poor to the coffers of rich with the help of artificial food crisis.

The crisis is being prolonged intentionally so that the mafia can extract maximum from the struggling masses as the authorities seems fully satisfied by relying on issuing hollow statements, he said.

Inaction on the part of the federal and provincial governments have triggered fears and doubts among the large section of masses, while it is pleasing the profiteers, said Dr. Murtaza Mughal, President PEW.

He said that the decision to import wheat and sugar is not being implemented the way it should have been which is helping hoarders to fleece masses since last year.

Dr Murtaza Mughal said that amid bleak food security outlook the federation and provinces have locked horns over the wheat support price which can result in another crisis.

The federal government is ready to buy imported wheat for Rs2500 per 40kg but not ready to increase wheat support price above Rs1600 which is amazing and amounts to exploitation.

On the other hand hoarders, profiteers and flour mills mafia have been allowed to extract as much money from poor as possible.

He said that flour was available for Rs33 per kg in 2018 which is now being sold at Rs70 per kg; the price of sugar has jumped from Rs58 to Rs110 while prices of other items have also been increased burdening masses by trillions of rupees.

Moreover, he said, the electricity price was Rs10 per unit in 2018 which is not Rs20 which transferred one trillion rupees from masses to the government.

For more information, contact:
President
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad
Tel: +92-51-2510375
Fax: +92-51-2802449
Cell: +92-321-5157671
Email: president@pakistaneconomywatch.com
Web: www.pakistaneconomywatch.com

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