Govt to boost reliance on borrowings
MQM’s shadow budget a positive move
The Pakistan Economy Watch (PEW) on Wednesday said upcoming budget will offer nothing but disappointment.
The government which is finding difficult to fulfil its debt obligations would be unable to provide any relief to masses and business community, it said.
Despite a severe financial crisis in sight, the tax-exempted sector will continue to enjoy free ride without discharging their responsibilities, said Dr. Murtaza Mughal, President PEW.
Drying foreign inflows and failure to widen tax net will leave government with few options but to rely on borrowing from State Bank and other commercial banks, he added.
Archive for May, 2012
Govt to boost reliance on borrowings
Leniency to send negative signals
The Pakistan Economy Watch (PEW) on Saturday said US reaction on the conviction of Dr. Shakil Afridi is an evidence enough to prove him an American agent.
The convicted medical practitioner should also be tried for launching a fake vaccination campaign and shattering trust of masses which are already against vaccinations, it said.
Dr. Shakil Afridi is an American intelligence operator and any leniency will encourage other spies working in Pakistan to destabilise country, said Dr. Murtaza Mughal, President PEW.
Lax attitude making criminals fearless, markets vulnerable
Window dressing cannot comfort stock crash affectees
The Pakistan Economy Watch (PEW) on Tuesday expressed scepticism about deal between National Accountability Bureau (NAB) and Karachi Stock Exchange (KSE) to bring rouge brokers to book.
This is a showy misrepresentation intended to conceal unpleasant reality and gain popularity, it said.
The stock market crashes from 2000 to 2008 were engineered in which top government functionaries and influential brokers were directly involved, said Abdullah Tariq, SVP, PEW in a statement issued here today.
He said that why NAB and KSE are determined to do something about the 2008 crash after four long years.
Masses deserve to know the outcome of investigations of all the five stock market crashes that took place in May 2000 and March 2005, he said.
Rising poverty reason behind mounting remittances
IMF doubts Pakistan’s capacity to repay loans, introduce reforms
The Pakistan Economy Watch (PEW) on Sunday said it would be difficult for Pakistan to secure another bailout package from the IMF to avoid looming crisis of external payments.
Pakistan has good relations with the US in 2008 when it got 7.6 billion dollar loan after two weeks of negotiations but now the situation is different, it said.
At present, our relations with the US are tense, IMF is focused on European crisis and unhappy over our failure to introduce reforms, said Dr. Murtaza Mughal, President PEW.
IMF doubts Pakistan’s repayment capacity; it is in no hurry to lend more to enable Pakistan to return 4.3 billion dollars in the next fiscal, he said.
US using NATO as a tool to ensure global hegemony
The Pakistan Economy Watch (PEW) on Friday said that US impatience to reopen NATO supply route in not only for resumption of supplies of non-lethal hardware.
It seems that US is in a hurry to withdraw troops from Afghanistan as it can have a negative impact on Obama in the election year.
War in Afghanistan has already dented credibility and economy of America beyond repair; further losses will be intolerable for the US electorate, said Dr. Murtaza Mughal, President PEW.
NATO wants minimum losses in the largest and most complex withdrawal in the history of modern military conflict which seems very difficult, he said.
Keeping country dependent, ensuring Indian supremacy was planned
The Pakistan Economy Watch (PEW) on Sunday said efforts of bureaucracy to shelve Thar coal gasification project are unfortunate.
Statement of Member Energy, Planning Commission Shahid Sattar regarding the economic unviability of the project could be result of the continued campaign of powerful petroleum mafia, it said.
How come a project became unworkable in which federal and provincial government haves invested a lot while dozens of foreign companies, multinationals and reputed individuals has expressed interest, Dr. Murtaza Mughal, President PEW questioned.
The stance of Planning Commission is nothing but a trick to deceive masses, he said.
The Pakistan Economy Watch (PEW) on Tuesday said upcoming budget by the embattled government will be sheer disappointment for majority and good news for influential.
Government will compromise its stance on subsidies and rely on slogans to offer a budget that will suit their political ambitions, it said.
Questions are being raised about the legality of the fifth serial budget which will be presented by a Cabinet working under a convicted Prime Minister, said Dr. Murtaza Mughal, President PEW.
He said that no key change will take place in the budget to give a breathing space to reeling masses which will make environment more fragile.
Best way to eradicate poverty is to boost growth through effective governance
Improvement in quality of life doesn’t depend on charity but economic development
The Pakistan Economy Watch (PEW) on Sunday questioned impact of Benazir Income Support Programme (BISP) on poverty reduction initiatives.
BISP claims to be a good poverty reduction tool while a probe revealed an altogether story, it said.
In fact, BISP has remained a political tool since its beginning in 2008 which has invited criticism from many quarters, said Dr. Murtaza Mughal, President PEW.
Hand-outs from BISP are not distributed on merit but on the political considerations therefore the province of Sindh which is the stronghold of PPP receives more than fair share, he said.
The Pakistan Economy Watch (PEW) on Tuesday lauded the government for taking steps aimed at addressing the genuine concerns of rice farmers and exporters.
The concerns of growers, exporters and other stakeholders came to limelight following the decision of the government to liberalise the import of agricultural products from India.
Trade liberalisation could have resulted in onslaught of cheap rice from India hurting local sector which is employing millions and generating around two billion dollars per annum for country, said Dr. Murtaza Mughal, President PEW.
He said that Pakistan is following free market economy rules in rice trade while India is heavily subsidising many agricultural products including rice.