Archive for June, 2015

FBR collection target too optimistic: PEW

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Mini budgets, blocking refunds only way to achieve target
The Pakistan Economy Watch (PEW) on Sunday asked the government to reconsider imposing new taxes worth Rs 253 billion which will hurt economic activities.
Only those subsidies should be reduced or removed which have no impact on the man on the street, he said.
Talking to the business community, he said that the FBR’s target is very optimistic which must be reduced by Rs500 billion because this will push tax authorities to squeeze the existing taxpayers.
He said that last year FBR was given target of Rs 2890 which was thrice revised to 2605 but if met failure. Despite lack of success, the institution was given target of Rs 3104 billion which is difficult to accomplish without introducing mini budgets and blocking refunds.
Dr. Murtaza Mughal said that proposed hike in price of energy products is part of the plan to introduce mini budgets which will not go down well with the masses due to receding international oil prices.

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Karachi power crisis reminds importance of KBD: PEW

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Pakistan energy security linked to mega reservoirs
The Pakistan Economy Watch (PEW) on Wednesday said government should revisit plans to revive old dams in favour of constructing new dams with special focus on Kalabagh dam (KBD)
KBD is the most viable and most politicised projects in the history of Pakistan which would cost less and last longer than any other dam in the country, said Dr. Murtaza Mughal, President PEW.
Local and international experts have linked survival of Pakistan to KBD and opined that desilting of Tarbela reservoir is not an economically or technically very viable option.
Tarbela has already lost 30 per cent capacity to 6.6 million acre feet to silting over the years but experts say that instead of undertaking massive desilting exercise it would be more economical to build a new dam.
Dr. Murtaza Mughal said that Tarbela dam has an estimated lifespan of 50 years; it would complete its designed life by 2029 while KBD has an estimated life of 450 years.

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PEW lauds Army for combating economic terrorism in Karachi

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The Pakistan Economy Watch (PEW) on Sunday lauded efforts of the Army and Rangers to clean Karachi, the economic capital of Pakistan of criminality, extortion, corruption, and extremism.
Whole nation backs the efforts by Army and Rangers to relieve the masses and dejected business community of increasing menace of economic terrorism, said Dr. Murtaza Mughal, President PEW.
He said that names of the officials and their political masters involved in corruption, extortion, blackmail, kidnapping, malpractices and misuse of authority should be put on the ECL lest they fly to their save heavens.
Dr. Murtaza Mughal said that Army was left with no option to launch operation as political parties were not eradicating corruption but promoting it and now politicians are trying to derail operation to save the criminals.

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Federal budget lacks short, long-term steps to alleviate poverty: PEW

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Punjab budget prefers roads, mega projects over social sector
Pakistan cannot afford world costliest metro projects
The Pakistan Economy Watch (PEW) on Sunday said that ruling elite has presented a budget made to benefit the oppressive class which lacks any initiative to lift people out of abject poverty.
The federal budget will increase the exploitation of the masses as our economic managers who are best at creative accounting are unaware of the ground realities and lack any ability to take short and long-term measures to alleviate poverty, it said.
The budget is repetition of the failed economic model focusing on costly loans to boost forex reserves to beat drums of success, said Dr. Murtaza Mughal, President PEW.
He said that forex reserves cannot be called stable because they are based on loans while the real source to earn foreign exchange are exports which are steadily falling due to disabling environment.

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Federal budget not to improve sentiments, investment climate: PEW

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The Pakistan Economy Watch (PEW) on Wednesday said budget will not improve the investment climate in the country which will shrink the industrial base while promoting tax evasion and flight of capital.
Industrialists would prefer trading, real estate and construction sectors over industrial expansion while many would relocate or simple transfer funds abroad bringing rupee under pressure, it said.
Government has done nothing in the budget to encourage investment in in industrial sector or reverse the trend among the businessmen to prefer trading over industry, said Dr. Murtaza Mughal, President PEW.

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Budget only offers frustration, assurances to the masses: PEW

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Rulers compromising national interests to please vote bank
The Pakistan Economy Watch (PEW) on Sunday said federal budget reflects priority of rulers to compromise national interests to please nobility and their vote bank.
The third budget of the incumbent government was not different from earlier ones which added to the frustration of masses and business community, it said.
The budget again protected interests of aristocracy while over burdening corporate sector which is already paying 70 percent of the total collection, said Dr. Murtaza Mughal, President PEW.
In a statement issued here today, he said that despite tall claims, the budget will result in nothing but inflation and unemployment to the masses which will add to the uncertainty.
Dr. Murtaza Mughal said that the federal government blasted petrol bomb just five days before the budget setting a record of twenty-five mini budgets in the last three years.

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GIDC to devastate fertiliser industry, farming communities: PEW

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Farmers shouldn’t be forced to suicides like Indian planters
The Pakistan Economy Watch (PEW) on Tuesday said (Gas Infrastructure Development Cess) GIDC imposed on the behest of IMF will devastate fertiliser industry and farming community.
It will increase the cost of urea by rupees four per kg which will be unbearable for millions of poor farmers already facing high input costs and heavy losses, it said.
Government should take GIDC decision back or make a new subsidy mechanism to save industry and farmers from the impact of cess lest they follow the Indian trend of suicides, said Dr. Murtaza Mughal, President PEW.
Pushing planters to the wall will have direct impact on agricultural production and food security situation in the country, he added.

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Rs 600 billion circular debt resurfaces: PEW

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Energy crisis in Pakistan suits some influential
The Pakistan Economy Watch (PEW) on Sunday said circular debt amounting to Rs 600 billion has resurfaced scaring investors, threatening industrial output and jeopardising growth rate.
Government has settled circular debt after coming to power but serious steps were not taken to stop it from reappearing which is disappointing, said Dr. Murtaza Mughal, President PEW.
In a statement issued here today, he said that government has not completed any noteworthy power project in the last two years which no major gas deposit has been found which has escalated the energy crisis impacting every person and all sectors of the economy.

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