Archive for December, 2013

Influence of cartels rising: PEW

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The Pakistan Economy Watch (PEW) on Sunday said influence of cartels and landed gentry has been rising which is biggest hurdle in self-sufficiency.
The government continue to take actions which please the unscrupulous businessmen and landlords which making life difficult for the masses, it said.
The political as well as military governemnts have always compromised national interests to please special interest groups which has left country dependant on loans and masses improverished, said Dr. Murtaza Mughal, President PEW.
He said that majority of the decision are being takne to please elite which has frustrated all efforts to raise revenue, broaden tak net, contain increasing black economy or get economy documented.

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Pakistani investors asked to abandon hostile Bangladesh

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Hasina creating gulf between two Muslim countries

The Pakistan Economy Watch (PEW) on Friday asked the Pakistani investors to walk out of Bangladesh which is not safe for them.
Prime Minister of Bangladesh Sheikh Hasina Wajid known for her pro-Indian tilt has been deliberately tarnishing image of Pakistan to win popularity and please India, it said.
The rapid developments indicate that the life and property of Pakistanis is not safe there and they should immediately return to Pakistan to play their due role in national development, said Dr. Murtaza Mughal, President PEW.
He said that Pakistani investors made a beeline to Dhaka for cheap labour, better law and order situation, dependable energy, absence of bhatta mafia and market access to 37 countries.

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GB oil mafia active again at the onset of winter

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Various tactics employed to tame state-run oil retailer, officials
The Pakistan Economy Watch (PEW) on Thursday said Gilgit-Baltistan (GB) oil mafia which reaped illegitimate benefits to the tune of billions during Musharraf’s era has become active again.
The mafia is using all the ploys to tame state-run oil marketing company and the officials of Ogra as well as petroleum ministry to get desired results.
As always, the GB oil mafia has created artificial shortage of fuel and a strike by the carriage contractors has been engineered during the biting cold, said Dr. Murtaza Mughal, President PEW.
However, he said, the concerned government departments have refused to bow down to the unjust demands.
He said that the mafia embezzled billions by misusing petroleum freight subsidy, it would fill a tanker from Sihala depot for GB, sell fuel at any filling station in the twin cities and charge fare for GB from the government.
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PM lauded for overthrowing drug price hike decision

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Lucrative pharma industry deserves no price hike
Unfeasible businesses don’t expand with amazing pace
Relaxing import policy suggested countering unethical tactics
Steps freeing medicine from clutches of pharma industry demanded
The Pakistan Economy Watch (PEW) on Wednesday lauded Prime Minister Nawaz Sharif for reversing notification of fifteen per cent hike in prices of drugs issued by health ministry terming it a proper step in the public interest.
Pakistan’s vibrant pharma industry doesn’t deserve any more relaxations or upward revision of prices of thousands of medicines as they are already making handsome profits, it said.
The prices of medicines are already very high in Pakistan as compared to neighbouring countries therefore there is no point in loud and persistent outcry by the two associations representing local and multinational pharmaceuticals, said Dr. Murtaza Mughal, President PEW.
He said that pharmaceuticals claim that prices have not been revised since a decade while the prices of food, energy, transport and wages have witnessed 150 to 300 per cent increase during the same period.

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Silence of opposition, IMF over Govt’s wild borrowing assailed

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Delay in CSF compensation by US to create serious problems for Pakistan
The Pakistan Economy Watch (PEW) on Monday said US has been intentionally hurting Pakistan’s weak economy to realise its unholy designs in the region.
An economically sound and stable Pakistan is not in the interest of Washington that need a weak country which can dance on their tunes, said Dr. Murtaza Mughal, President PEW.
He said that State Bank of Pakistan is left with almost three billion dollars of forex reserves enough to meet import bill for a month after which situation can deteriorate rapidly.
On the other hand, government has failed to introduce policies which can boost reserves, bar flight of capital, broaden tax net or lure investors, he said.
Dr Murtaza Mughal said that incumbent rulers have been following policy of predecessors by claiming to broaden tax net and cut expenditures but relaying on borrowings which has triggered inflation and humbled rupee.

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Supreme Court’s LPG quota decision lauded

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JJVL Clarifies

SC decision to ensure transparency in future deals, privatisation
The Pakistan Economy Watch (PEW) on Sunday lauded the Supreme Court of Pakistan for its landmark decision on the LPG quota scam.
The decision declaring the LPG quota agreement between Jamshoro Joint Venture Limited by the Sui Southern Gas Company as illegal will go a long way in ensuring transparency in the future deals, it said.
The Supreme Court’s decision to hold all the benefices of the quota scam responsible and order regarding recoveries will have a discouraging effect on favouritism, fake investors, and it will make the upcoming privatization process transparent, said Dr. Murtaza Mughal, President PEW.
He said that deal between SSGC and JJVL was result of collusion between LPG mafia and a former president that helped deprive masses and exchequer of tens of billions for over a decade.

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PEW expresses concern over depleting forex reserves

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Administrative action to check exchange rate erosion will hurt economy
The Pakistan Economy Watch (PEW) on Wednesday expressed grave concern over depleting foreign exchange reserves asking government to take instant steps to improve the situation.
Foreign exchange reserves held by the State Bank of Pakistan (SBP) have contracted to lowest level since November 2001 which is alarming, it said.
However, any governmental action in this regard will drop the confidence of market to the post-nuclear test level which would result in a disaster for the economy, said Dr. Murtaza Mughal, President PEW.
He said that different officials asking government for action are doing a great disservice to the country as it will do more harm than good which will not be permitted under any circumstances.
Despite record remittances and growth in exports the situation of reserves remained unsatisfactory due to increasing oil imports and repayments to IMF, he added

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ANP criticizes package, tax breaks for businessmen

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Incentives not to improve situation: Shahi Syed
Awami National Party (ANP) on Sunday criticised recently interoduced packages and tax breaks for businessmen saying the effort will yield yielding little or no result at all.
Worst law and order situation, double-digit inflation, increasing poverty and shrank forex reserve is result of the policies of the government which cannot be reversed through packages, said President of ANP Sindh Shahi Syed.
Talking to Dr. Murtaza Mughal, President of the Pakistan Economy Watch (PEW), he said that how can government claim to attract foreign investment when our own educated class and the business community is seeking refuge overseas.
The package will not result in better law and order situation, infuse confidence in the investors, stop flight of capital, brain drain, mass departure ofindustries and fall of the local currency.
Shahi Syed said that situation can improve in Karachi if government acts upon the directives of the Supreme Court and serious action for deweaponising and cleansing police of politics.
Speaking on the occasion, Dr Murtaza Mughal said that package by the PM is nothing but an old economic trick which will meet the fate of failed schemes of the past.

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