Wrong policies played havoc with the economy

Business News English

Islamabad, December 07, 2021 (PPI-OT):The Pakistan Economy Watch (PEW) on Tuesday said despite the lack of resources expansionary policies were adopted to boost businesses and investment which led to a serious economic crisis. Masses are paying the price for huge concessions given to the influential sectors despite warning by concerned circles, it said.

Despite the sharp depreciation of the rupee, neither the exports increased as expected nor the imports decreased but the life of a common man became a living hell, said Dr. Murtaza Mughal, President PEW. He said that an interest rate hike in the month of December has become necessary to avoid further problems otherwise imports will continue to increase and inflation will make more holes in the pockets of the poor and mediocre class.

He said that wrong policy decisions have pushed up imports to more than 7.8 billion dollars in the month of November pushing up inflation to unprecedented levels. The central bank will have to raise interest rates this month or the situation will worsen, he said, adding that now friendly countries are providing loans on strict terms while the only way to control ever-increasing imports is to shrink the economy.

Dr Murtaza Mughal said that the services sector was being neglected in the efforts to control imports. Pakistanis spend three billion dollars annually on travel abroad, more than half of which are for recreational purposes, which must be controlled through intervention. He said that the economy and interests of masses were compromised for a false impression of rapid national development which has resulted in a serious crisis.

Now the policymakers must abandon plans for ambitious growth and undertake structural reforms as directed by the lenders. Efforts for artificial growth have always backfired but policymakers are not ready to learn any lesson from history, 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