Archive for August, 2015

Government asked to reconsider export plan: PEW

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Further erosion in exchanger rate against national interests
The Pakistan Economy Watch (PEW) on Sunday said further erosion in the value of local currency will be against the national interests as it will hit economy and masses hard.
Government must reconsider export policy and try to reduce cost of doing business by revisiting energy costs, tax breaks and payment of refunds, it said.
Situation calls for fundamental changes in TDAP and bring an end to the culture of appointing incompetent commercial counsellors in the foreign missions, said Dr. Murtaza Mughal, President PEW.
In a statement issued here today, he said that devaluing rupees will make imports costly which are double than the exports, it will increase size of foreign debt and interest being paid on loans.

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Banks not serving masses, business community: PEW

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Link between banks, market economy getting weak
Growth rate unachievable sans participation of banks

The Pakistan Economy Watch (PEW) on Tuesday said commercial banks are not serving masses and the business community which has weakened their bond with market economy.
Central bank continued to provide liquidity to commercial banks which in turn lend it to the government that guarantee security and good returns, it said.
Therefore, banks have started avoiding masses, business community, rural economy and reduced efforts to attract borrowers or depositors, said Dr. Murtaza Mughal, President PEW.
The situation is hurting economy as the credit offtake by the private sector has been reduced by over one hundred percent in 2015 as compare to 2014 despite record cut in interest rates by SBP.

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Masses being misguided on the issue of economic development: PEW

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None of the prime challenges have been addressed
The Pakistan Economy Watch (PEW) on Sunday said masses are being misled on the issue of economic development which is not the case.
Economy is not developing but going down but the authorities, IMF and international media continue to throw dirt in the eyes of masses, it said.
Tall claims and creative accountancy will not change the situation unless bold decisions and painful reforms are undertake for which government seems unwilling, said Dr. Murtaza Mughal, President PEW.
Long power outages, grinding poverty, stagnant rural economy, unemployment, institutional and environmental decay, deteriorating standard of living are prime challenges, he added.

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Scapegoating expats a recipe for disaster: PEW

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Independent authority for tackling remittances proposed
The Pakistan Economy Watch (PEW) on Tuesday said scapegoating expatriates to increase revenue is a recipe for disaster which country cannot afford.
Remittances have 6 percent share in GDP and the sector has swelled by 150 percent in the last six years which must not be discouraged, it said.
Expats are sending home around 18 billion dollars per annum through legal means while other means including hundi may put figure to $ 25 billion, said Dr. Murtaza Mughal, President PEW.
He said that remittances are now covering entire oil import bill while its role in stabilising rupee and forex reserves and bridging trade gas cannot be underestimated in these hard times of dwindling exports.

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Pakistani exports didn’t dwindled overnight: PEW

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Misuse of export incentives blamed for sliding exports
Rupee shouldn’t be devalued on demand of textile sector

The Pakistan Economy Watch (PEW) on Sunday said Pakistani exports have not dwindled down overnight expanding trade gap.
Favouritism, appointments in violation of merit and misuse of export incentives are to be blamed for the situation, it said.
Situation will not change unless appointments are made strictly on merit, outdated elements are removed and those behind the drop should be held responsible, said Dr. Murtaza Mughal, President PEW.
In a statement issued here today, he said that increasing cost of doing business, energy crisis and non-payment of refunds by FBR has also played it role in hurting exports.
Policymakers are too much focused on textile sector for exports while other sectors and textile value addition have been put on the backburner which is limiting Pakistan’s capability to benefit from GSP plus status.

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Govt failed to introduce important reforms to revive economy: PEW

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Govt could not fulfil promises with masses, IMF
The Pakistan Economy Watch (PEW) on Thursday said government has failed to introduce meaningful reforms in any critical sector of the economy to change the situation.
Government could not kept promises of manifesto while it has not shown any progress in promises carried out with the IMF before signing 36-month, $6.2bn Extended Fund Facility, it said.
The critical sectors needing reforms include energy, taxation, trade deficit, autonomy of the central bank, investment, agricultural tax and exports of which none is showing any progress, said Dr. Murtaza Mughal, President PEW.
He said that circular debt has swelled to Rs 627 billion rupees, retailer and wholesalers are at daggers drawn with the government despite the fact that they cover 18 percent of the GDP and less than one percent of the tax collections.

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Conspiracies against CNG industry slated: PEW

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LNG price disheartening consumers
The Pakistan Economy Watch (PEW) on Sunday condemned conspiracies against world’s largest CNG industry worth Rs 450 billion by some influential quarters.
A lobby continue to misguide government in the CNG issue headed by an official of a gas company who is considered above the law, said Dr. Murtaza Mughal, President PEW.
In a statement issued here today, he said that the gas theft has reached alarming proportions but the said officials cannot be held responsible due to his political connections.
He said that the same lobbty has been trying to frustrate LNG import project while the gas is purchased on inflated rates for personal welfare and dishearten the millions of consumers.
Dr. Murtaza Mughal said that former government demonastrated record mismanagement in the energy sector therefore the incumbent government must show some positive development.

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PM asked to intervene to resolve WHT dispute: PEW

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The Pakistan Economy Watch (PEW) of Friday asked Prime Minister Nawaz Sharif to intervene to diffuse tensions between government and business community over imposition of withholding tax (WHT) on banking transactions.
It is responsibility of the Government to save existing policy of improved revenue generation from failure, it said.
In past all the policies to increase government’s income had backfired due to overdependence of the governments on the tax bureaucracy which is not aware of the ground realities, said Dr. Murtaza Mughal, President PEW.
In a statement issued here today, he said that determination of Finance Minister Ishaq Dar on the issue of WHT is laudable but some reservations of wholesalers and retailers must be taken into account.

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Dar’s determination in WHT issue lauded: PEW

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The Pakistan Economy Watch (PEW) on Tuesday lauded the determination of Finance Minister Ishaq Dar on the issue of imposition of withholding tax on bank transaction terming it a great move.
The steadfastness of the government will help Pakistan emerge as a self-reliant nation in the long run which must be appreciated, said Dr. Murtaza Mughal, President PEW.
In a statement issued here today, he said that the strikes of traders are being backed by frustrated politicians, black sheep and billionaire traders who don’t want to discharge national obligation by paying taxes.
He said that trade association are divided over the issue which has increased chances for the government to achieve the noble objective.

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BoI and TDAP termed white elephants: PEW

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Pakistan’s investment, exports situation deteriorating
The Pakistan Economy Watch (PEW) on Sunday said Board of Investment and Trade Development Authority of Pakistan have become white elephants which is apparent from falling investment and exports.
No on is held responsible for the situation which indicates non-serious attitude of the government and ability of its economic managers, he said.
Dr. Murtaza Mughal said that foreign investment in Pakistan is down by 58.2 percent to 709 million dollars while it is $850 million in Sri Lanka, $1.5 billion in Bangladesh, $3.5 billion in India and USD 4 billion in Ghana.
Pakistan saw a slide of almost five percent in exports to 23.8 billion dollars in one year while Bangladesh exports stood at dollar 35 billion during the same year which is amazing, he said.

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