Economy in the clutches of speculators, manipulators: PEW

Policies demanded to divert investment to productive sectors
Promotion of industrial sector can salvage the sinking economy

The Pakistan Economy Watch (PEW) on Saturday said the economy is in the clutches of speculators since long who continue to thrive on manipulation.

Speculation has become the most profitable business in Pakistan while establishing an industry has become next to impossible, it said.

The economy has lost its direction to the extent that the industrial community is also starting speculation and trading which is alarming, said Dr. Murtaza Mughal, President PEW.

The country cannot overcome economic problems unless speculation is discouraged and industrialization is preferred over everything else, he added.

Dr. Murtaza Mughal said that the speculative sectors should be taxed as much as they are taxed in neighboring countries while masses and economy should be insulated from these parasites.

He noted that stock exchange, property and currency business benefits some while industrialists bring investment, ensure production and exports, earns revenue for the government and provide jobs.

Former rules promoted speculation in stock, property and commodities markets to give an impression of rapid GDP growth which didn’t benefit the country but some brokers, he said.

Dr. Mughal said that increased loans by the private sector should not be confused with improved manufacturing as most of the loans are given to retailers, wholesalers and insignificant services sector.

The government should frame policies to divert investment towards the industrial sector while discouraging black sheep in the industry addicted to packages and bailouts, he demanded.

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In: UncategorizedAuthor: pakistaneconomywatch