Archive for January, 2015

Commerce officials milking business community: former VP FPCCI

Click here to View Printed Statement
DGTO made millions during FPCCI elections: Daro Khan Achakzai
Former President FPCCI Daroo Khan Achakzai on Wednesday said Directorate General of Trade Organisations (DGTO), an attached department of Ministry of Commerce continue to harass the business community for personal gains.
He said that a top official of the regulator minted tens of millions during the recent FPCCI elections.
Talking to Dr. Murtaza Mughal, President Pakistan Economy Watch, he said that he possesses details of the bank accounts of DGTO Sajid Hussain in which heavy amount was deposited during the elections of Apex Chamber.
How can a government official justify a single transaction of over Rs 10 million in his bank account during the elections, Daro Khan questioned?
The business leader who has also served as president of Chaman Chamber said that government continue to violate merit to reward the blue eyed.
He said that the provincial government of the Khyber Pakhtoonkhwa continue to punish corrupt while the central government prefer to reward them. Raiwind has become a factory to produce appointment notifications, he observed.

read more…

In: UncategorizedAuthor: Comments (0)

Cut in interest rate to generate higher economic activity: PEW

Click here to View Printed Statement
The Pakistan Economy Watch (PEW) on Sunday lauded the decision of State bank of Pakistan (SBP) to cut policy rate by one percent to prop up growth terming it essential to strengthen business sentiments. The decision is pleasing as it will trigger economic expansion, boost capital market and support badly needed foreign investment, it said.
Decision of the SBP will stimulate economic growth, encourage borrowing, investing as well as exports and help reduce ratio of defaults, said Dr Murtaza Mughal, President of the Pakistan Economy Watch.
He said that SBP decision will help our sluggish economy but interest rates alone cannot help overcome economic issues as it has nothing to do with energy scarcity, security situation, and political uncertainty. Murtaza Mughal said that before the SBP statement the Finance Minister Ishaq Dar told a press conference the discount rate has been cut by one percent which has raised questions about autonomy of the central bank.
read more…

In: UncategorizedAuthor: AAMIR JAVEDComments Off on Cut in interest rate to generate higher economic activity: PEW

Massive corruption detected in Sindh Health Department

Click here to View Printed Statement
Interest of poor patients compromised for kickbacks
Local pharma companies invoke High Court to get justice

The Pakistan Economy Watch (PEW) on Thursday said corruption to the tune of tens of millions have been detected in the Sindh Health Department in purchase of medicine for the treatment of killer disease of hepatitis B and C.
The department spend 240 million rupees on purchase of 48000 injections which were available for almost 80 million in the market.
According to the details the Program Manager of Hepatitis Prevention and Control Program, invited tenders for procuring supply of medicines including that for hepatitis B and C.
Various national and international pharmaceuticals submitted their technical as well as financial bids for qualifying the tender.
On 26 December 2014, the department in violation of procurement laws, awarded tenders to a multinational company on the grounds that their products are approved by FDA (Federal Drug Authority of USA) and EMA (European Medicine Agency).

read more…

In: UncategorizedAuthor: AAMIR JAVEDComments Off on Massive corruption detected in Sindh Health Department

Govt handling of fuel crisis attacked

Click here to View Printed Statement
PEW rejects excuses by top officials for petrol crisis
Incompetence being camouflaged under allegations of conspiracy
The Pakistan Economy Watch (PEW) on Tuesday criticised the way PML-N is handling motor fuel crisis and hiding its mismanagement under charges of a conspiracy against the government.
Federal ministers for finance, petroleum and water and power who are considered responsible for the mess are unwilling to accept any responsibility while offering lame excuses, said Dr. Murtaza Mughal, President PEW.
Talking to a delegation of traders led by Shahid Rasheed Butt, he said that suspending officials that had repeatedly warned about the looming debacle will not help government pacify the enraged masses.
Government paid circular debt once but did nothing to prevent its re-emergence and now they are denying responsibility which amounts to insulting the suffering people, he added.

read more…

In: UncategorizedAuthor: AAMIR JAVEDComments Off on Govt handling of fuel crisis attacked

LNG imports through PSO opposed

Click here to View Printed Statement
The Pakistan Economy Watch (PEW) on Monday opposed import of Liquefied Natural Gas (LNG) through state-run oil retailer Pakistan State Oil (PSO) to tame energy crisis terming it against the national interests.
PSO has repeatedly failed to maintain supply chain of the fossil fuel resulting in crisis, the credit of ongoing petrol crisis also goes to the PSO among others, it said.
Private sector should be allowed to import petroleum products as well as LNG as PSO has no experience in the import of gas and red-tapesim will delay arrival of LNG which will compromise growth, said Sajid Ghulam, Vice President PEW.
A financially insolvent company like PSO cannot make spot payments to the LNG exporters as payment in LNG supply chain has to be very prompt from all ends – from suppliers right up to end-users – otherwise the supply chain will disrupt in short span of time. read more…

In: UncategorizedAuthor: AAMIR JAVEDComments Off on LNG imports through PSO opposed

Petrol crisis exposes good governance claims of the Govt

Click here to View Printed Statement
Authorities trying to hide incompetence through lame excuses
Acute loadshedding to take country hostage as oil stocks dried
Private sector should be allowed to import petroleum products
The Pakistan Economy Watch (PEW) on Saturday said petrol crisis has exposed compitance of petroleum officials and the claims of the government regarding good governance.
Over half of the country’s population and economy continue to suffer because of the fuel scarcity but government seems uninterested in resolving the crisis, said Dr. Murtaza Mughal, President PEW.
He said that top government functionaries continue to hide their mismanagement through different baseless excuses.
Dr. Murtaza Mughal said that the situation can be normalised in two months if there is a political will to resolve the crisis.

read more…

In: UncategorizedAuthor: AAMIR JAVEDComments Off on Petrol crisis exposes good governance claims of the Govt

Circular debt crosses Rs600bn due to officials lethargy: PEW

Click here to View Printed Statement
ISLAMABAD : President of the Pakistan Economy Watch, Dr Murtaza Mughal, on Friday said wrong decisions of the bureaucracy are behind the petrol crisis which has made life difficult for millions and hit economy.
Those who failed to take corrective measures in time should be asked to give reasons for the disaster, he said. The officials concerned continued to ignore plight of PSO despite record receivables of 235 billion and power sector circular debt hitting a record mark of Rs 600 billion, he said while talking to Patron of the Chamber of Small Traders Islamabad Shahid Rasheed Butt and members of business community.
Dr Murtaza Mughal said that PSO started defaulting on its obligations in November 2014 and the institution faced refusal by the banks for any loans.

read more…

In: UncategorizedAuthor: AAMIR JAVEDComments Off on Circular debt crosses Rs600bn due to officials lethargy: PEW

Just distribution of wealth needed to win war against terrorists

Click here to View Printed Statement
FBR blamed for artful trickery of tax collection figures
The Pakistan Economy Watch (PEW) on Sunday said that just distribution of wealth is imperative to win ongoing war against militants and extremists.
Country is suffering from regressive tax system where seventy per cent of the taxes are collected through indirect taxation pushing deprivation, poverty and gulf between rich and poor to new heights, said Dr. Murtaza Mughal, President PEW.
In a statement issued here today, he said that FBR has failed to enforce a proper direct taxation system which is benefitting the elite and making live difficult of the poor.

read more…

In: UncategorizedAuthor: AAMIR JAVEDComments Off on Just distribution of wealth needed to win war against terrorists

Political environment hit economic growth during 2014

Click here to View Printed Statement
The Pakistan Economy Watch (PEW) on Wednesday said politics and sit-ins hit government plans to overcome energy crisis and ensure good GDP growth in 2014.
This year saw unprecedented hike is value of dollar against rupees and record oil prices That retreated, it said.
Similarly, the inflation touched new heights to fall later due to sliding oil prices, said Dr. Murtaza Mughal, President PEW.
The SBP started softening monetary policy due to extra space gained through retreating oil prices while remittances, manufacturing and GDP growth improved.
Exports stood at 25 billion dollars to June 2014 while imports were recorded at 45 billion dollars triggering trade deficit, he noted.

read more…

In: UncategorizedAuthor: AAMIR JAVEDComments Off on Political environment hit economic growth during 2014