Government losing popularity among masses: PEW
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Debatable policies causing brain drain, capital flight and exodus of industry
The Pakistan Economy Watch (PEW) on Tuesday said controversial steps by the government are choking growth, frustrating masses and the business community while hitting its popularity.
Economic managers continue to take questionable decisions on the dictation of IMF making life difficult for the masses, said Dr. Murtaza Mughal, President PEW.
He said that recently power tariff was revised for the domestic consumers but the Supreme Court intervened to salvage the masses. However, the government hit the masses with an unjustified hike in the Sales Tax which resulted in the massive uproar.
Dr. Murtaza Mughal said that the decision was taken in a situation when rupee has eroded by 10 per cent against the dollar while runaway inflation has pushed millions below the poverty line.
Earlier, one of the most corrupt institutions was given complete access to the bank accounts which put the future of the banking industry at stake. The decision was taken back to the stiff resistance by banking companies, business community and the masses, he said.
Giving powers to FBR to access bank accounts resulted in massive withdrawals of money from the banks which was converted in dollars to be deposited in foreign banks or kept at home which worsened the situation.
Now the government has planned to set another record of incompetency by selling state-owned units in haste which include profitable institutions as well as the regulators, he observed.
Governor of the SBP recently claimed that 25 million dollars are leaving country everyday which speaks of the incompetence or collusion by the agencies concerned.
He said that government steps coupled with frequent changes in taxation process has not only frustrated business community but jacked up the production price to an unsustainable level resulting in lost markets, closures and unemployment.
Economic managers must take responsibility of brain drain, flight of capital and exodus of industry which is weakening the whole economy, said Dr. Mughal.
