SBP cheating masses to please government: PEW

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The Pakistan Economy Watch (PEW) on Sunday said State Bank continue to cheat masses to please the government which has dented its credibility.
It asked the State Bank of Pakistan to present true picture of the economy and refrain from issuing political statements.
The statement of the governor of central bank regarding country’s debt-servicing capacity, remittances and exports are questionable at best, said Dr. Murtaza Mughal, President PEW.
He said that confidence in the central bank is essential for the smooth functioning of the financial system therefore job of issuing rosy statements should be left to the politicians.
Dr. Murtaza Mughal said that the governor of SBP has termed fall in remittances and exports as temporary which widening deficit has been downplayed which is contrary to the ground realities.

The central bank has reassured that exports will pick up as refunds have been ensured and energy as well as law and order situation has improved which is over optimism as assurance will not change the ground realities, he added.
All the sectors that are necessary to boost reserves that include exports, remittances and investments are sliding therefore the claim of strong debt repayment capacity is amazing.
If situation continued without any betterment, country will have to enter another IMF programme to retire debts as record borrowing has put strain on country’s financial health, he warned.
The government has failed to find alternatives for increasing its exports for long-term stability in foreign reserves.

In: Economy WatchAuthor: AAMIR JAVED