Dr Murtaza Mughal, President of Pakistan Economy Watch (PEW), said that Independent Power Producers (IPPs) have destroyed the country’s economy.
He said private power plants are a big threat to the country’s economy and people, making national development impossible.
Dr Mughal said in a statement that the government should buy all IPPs from their owners to eliminate this problem. He said that at least $5 billion would be required to purchase IPPs, which should be arranged by taking loans from international institutions.

The interest on the $5 billion loan will be nothing compared to the payments made to the IPPs. The country’s people will be saved from a great punishment if these units are bought. According to the United Nations, elites are given benefits worth seventeen and a half billion annually.
Five billion dollars can be managed even by reducing these benefits for one year. In addition, government purchases of up to fifteen billion dollars annually and a good chunk of this money are embezzled. Capital can also be managed by reducing annual purchases.
Dr Mughal said that the energy sector’s circular debt had reached Rs2,310 billion in May, while payments to IPPs had reached Rs1,800 billion. The government had to pay a late payment surcharge for the delay in payment.
He said that the role of private power producers is very significant among the factors responsible for the huge increase in electricity bills in Pakistan. The IPP bill is the third largest debt owed to the government after defence expenditures and foreign debt repayments.
However, despite the payment of this amount, the circular mountain is increasing instead of decreasing.

He said that through this significant initiative, easy loans will be provided to farmers through the establishment of the Punjab Kisan Bank.

He added that the comprehensive package for farmers includes the Green Tractor Scheme, local harvesters and agricultural equipment manufacturing, and the Oilseed Promotion Programme.

Dr. Murtaza Mughal said that a 70 percent subsidy on small tractors and a 50 percent subsidy on large tractors will be offered thorugh this package.

Through the High-Tech Mechanisation Programme, local manufacturing of advanced agricultural equipment in collaboration with foreign companies will be ensured, and incentives will be offered to enhance the technological capabilities of agricultural sector.

Additionally, the Oilseed Promotion Programme was approved to encourage different regions of Punjab to cultivate oilseeds, as Pakistan is spending billions on the import of edible oil, he informed.

Through the Kisan Card, farmers will receive agricultural inputs, along with other benefits and facilities. Implementing solar-powered tube wells and the drip irrigation system, both critical components of modernizing farm infrastructure are also under review and a decision is expected soon.

Dr. Murtaza Mughal said that agriculture has never been given importance, so the agricultural country has been forced to import billions of dollars worth of agricultural products.

In the past, many packages were announced for farmers, but the influential took all the benefits, and the small farmers were deprived.

He said that as long as small farmers are deprived the country’s food security situation will not improve.

Punjab Kisan Bank should provide loans to small farmers on easy terms to free them from the clutches of moneylenders, he demanded.

If the package is implemented and merit is ensured, Pakistan can become an agricultural country in the true sense, which will help it overcome economic difficulties, he said, adding that other provinces should also follow suit and announced support packages for farmers.

The aplit in the EU has alarmed the United States and its other allies as Russia is successfully using its natural gas as a weapon which has resulted in economic troubles for the continent in which many countries are dependent on Russian gas, it said.

Despite the war, Russia’s economy continues to grow while the rest of the world suffers from problems for which the United States is solely responsible, said Dr. Murtaza Mughal, President PEW.

He said that the European Commission had suggested a 15% cut in gas consumption to reduce the intensity of a crisis in winter but the twenty-seven countries were not on the same page on this matter while twelve have openly voiced against it.

Even before this, European countries have taken different positions on buying oil, grain, fertilizers and chemicals from Russia and supplying arms to Ukraine fracturing this important alliance, he added.

Dr. Mughal said that some EU countries are in favour of sanctions, while some are trying to buy more oil, gas and grain from Russia as the price of one unit of gas in Europe in July last year was 21.8 euros, which has now increased to 166 euros, altering the lifestyle of the people.

He said that Pakistan’s economy is being destroyed due to an appreciation in the value of the dollar and a sharp decline in the value of the rupee.

The devaluation has increased debt by almost Rs6000 billion and it is increasing at a rapid pace.

The economy is going down threatening national security but the circus of politicians continues because politicians are more concerned about power than the country and the economy.

The Pakistan Economy Watch (PEW) on Tuesday said Pakistan’s economic model is flawed and full of contradictions but the policymakers prefer shortcuts over sustainable development.

The policy to boost exports through subsidies is wrong as boosting exports require consistent policies, improved industrial investment and a focus on new technologies, it said.

Whenever the government has tried to boost exports artificially, it has resulted in trade deficit, inflation, exchange rate erosion, increased value of dollar, and mini-budget, said Dr. Murtaza Mughal, President PEW.

He said that sometimes mini-budgets fail to deliver, leading the government to seek loans from the IMF and other sources.

He said that repeated failed experiments have failed to push the policymakers to design an improved and sustainable economic and export model.

Dr Murtaza Mughal said that the current government inherited a trade deficit of 37.6 billion dollars which was reduced to 23.3 billion dollars in two years b ut now the trade deficit of July and August has jumped to 7.5 billion dollars which will set a new record if not controlled.

Dr. Mughal said that the policy rate hike by 0.25 percent by the central bank is insufficient as it will not stop the fall of rupee which is becoming as worthless as a tissue paper.

The SBP should have increased interest rates by one percent to increase it gradually to improve the economic situation, he said.

The Pakistan Economy Watch (PEW) on Saturday said the efforts of the State Bank of Pakistan (SBP) to stabilize the local currency has left much to be desired.

The central bank has pumped $1.23 billion dollars in the market to stabilize the rupee but to no avail, as the local currency has depreciated by Rs12 in the current fiscal, it said.

Government should immediately ban the import of luxury items while State Bank should hike policy rate to reduce demand to stabilize the rupee and reduce the speed of hike in the prices of essential items, said Dr. Murtaza Mughal, President PEW.

Fall in the value of the Pakistani rupee, the inflation rate in the domestic consumer market will increase further and it will have a bad effect on the general public, he added.

Dr. Murtaza Mughal said that artificial development finance through loans will never result in prosperity as imports worth $6.25 billion in one month and exports of around $ two billion have resulted in a monthly trade deficit of four billion dollars which is unsustainable.

He noted that the import of mobile phones worth two billion dollars and nine hundred vehicles was a wrong decision which was based on a desire to enhance revenue.

He said that the US and allies are not happy with the developments in the region and they are hatching conspiracies against Pakistan. Freezing the assets of Afghanistan is part of the plot which has burdened Pakistan and resulted in a massive outflow of dollars to Afghanistan.

Dr. Mughal said that hike in the value of the dollar can be an international conspiracy as some global and regional powers are not ready to accept the enhanced role of Pakistan and they are trying their best to harm Pakistan.

He demanded an inquiry into the hike in the value of the dollar which is damaging the economy and bring to justice if some elements are involved in it.

The Pakistan Economy Watch (PEW) on Tuesday demanded strict action against elements involved in delaying the import of wheat and sugar.

Unnecessary delay in import of wheat and sugar has not only increased prices in the local market but will also inflict heavy losses on the national exchequer, it said.

Change in Afghanistan has also increased demand for wheat which will have an impact on prices in Pakistan therefore wheat should be imported without delay, said Chairman PRW Brigadier (retd) Muhammad Aslam Khan.

In a statement issued here today, he said that Trading Corporation of Pakistan (TCP) delayed import of wheat and sugar despite repeated requests from Ministry for National Food Security.

The government decided to import half a million tonnes of sugar in the month of January but so far only one hundred thousand tonnes of sugar was imported which pushed up the prices locally benefitting hoarders, he said.

Similarly, Aslam Khan said, wheat was not imported when it was available in the international market for $280 per tonne and now 120000 tonnes of wheat will be imported at a cost of 369.50 dollars per tonne which will not only hit the public exchequer but the masses facing inflation.

He questioned the logic of unnecessary delay in procurement of wheat and sugar and asked “what prevents TCP from timely procurement of commodities which are tied to food security”.

He called for strict action against officials of TCP involved in damaging the interests of the masses.

Chairman of the National Business Group (NBG) of FPCCI Mian Zahid Hussain on Sunday said steps of the Finance Minister Shaukat Tarin is bringing refreshing change in the economic situation of the country.

The pro-growth policies of the finance minister, decision to invest heavily in the agriculture sector and plan to expand tax net while shielding masses from more burden are very positive moves, he said.

Mian Zahid Hussain said this while speaking at an Iftar dinner arranged by Deputy Convenor of Central Standing Committee on Insurance (NBG) Qazi Asif Saeed in honour of Dr. Murtaza Mughal, Group County Manager of United International Group.

He said that now the government will not compromise developmental projects to reduce the fiscal deficit while indirect taxes will not be increased providing some relief to the masses.

The government is spending 82 percent of the revenue on debt servicing therefore it has to borrow to run the affairs which can be resolved through tax reforms, he said.

Mian Zahid Hussain said that Govt plan to boost spending on large infrastructure projects by as much as 40 percent to create jobs and foster productivity is a timely decision that will bring a dramatic change.

Speaking at the occasion, Dr. Murtaza Mughal said that investment is flowing towards stock, property, and commodity markets which should be diverted towards the industrial sector to boost production, exports, jobs, and investment.

Members of Central Standing Committee for Insurance Zeeshan Pasha, Adeel Asim, Zeeshan Chaudhry, Faisal Ali Khan, Fahim Hanif, Ajmal Khan, Asif Anwar, Turab Shah, Major Saad, Khalid Mughal, Altimish Malik, Saifuddin Sheikh, Naeem Qureshi, Haseeb Sultani, and Mubasshir Mir were also present on the occasion.

The company has started a number of charity initiatives for the deserving members of the society executed throughout the year but the holy month of Ramadan is considered the most important for the purpose.

In this connection, MPCL held an Iftar dinner at Jaffar Chowk, Meharabadi, Islamabad for five hundred people which was attended by Dr. Murtaza Mughal, Pakistan Economy Watch, as Chief Guest and Brig. (retd)Aslam Khan, Chairman Pakistan Economy Watch.

The guests expressed their pleasure at the immaculate execution of the distribution process and said that this Mari Mobile Dastarkhawan has become a symbol of hope for the deserving people of Islamabad, who are being served quality food on a daily basis.

Usman Aslam, CRS Specialist of Mari Petroleum, one of the largest petroleum exploration and production companies in Pakistan, informed that five hundred people will daily get food during the holy month while three hundred will get breakfast and dinner on daily basis after Ramadan.

Founder and CEO of Comprehensive Disaster Response Service, Todd Shea, who is implementing partner of MPCL will supervise the whole distribution process to keep it as smooth as possible.

Food packages are also being distributed among families with a number of edible items including flour, cooking oil, rice, tea, dates, spices, and other food items, they said.

They added that MPCL’s corporate social Responsibility strategy is an integral part of a company’s culture and reflects commitment to contribute towards the well-being of our workforce, local community, and society at large.

The Pakistan Economy Watch on Wednesday said uniform power tariff regime is the mother of all ills in the power sector and an insult to honest consumers.

Power tariff should be different for different jurisdictions and it should be linked to the recoveries as poorly managed and efficient Discos cannot be treated as one, it said.

The areas, where recovery is better, should be spared from frequent price hike and load shedding while the regions where recovery is low should be penalised, said Dr. Murtaza Mughal, President PEW.

Talking to the business community, the veteran business leader said that how come government deal with residents of Islamabad with the highest recovery rate the way it handles consumers of Quetta, Peshawar or Sukkur where the recovery is at its lowest.

He noted that power consumers are already paying 17 percent GST, Electricity Duty, Finance Cost Surcharge, Neelum-Jhelum Surcharge and TV fees, therefore, they should not be overburdened by using this weapon of choice.

Dr Mughal said that government finds it easy to hike the price of electricity, gas and petroleum products when it fails to collect taxes agreed with the IMF or keep the budget deficit in limits, he added.

He said that masses should not be penalised for the inefficiency and mismanagement of bureaucracy and politicians who are behind the power sector mess and record circular debt which has reached to the tune of almost Rs2.5 trillion.

The power tariff for different distribution companies should be different and a process of reward and punishment should be initiated so that Discos can improve their performance and masses can get some relief, he demanded.

The Pakistan Economy Watch (PEW) on Tuesday said the industrial sector is going down due to heavy tax burden which is blocking national development, revenue and employment.

Government continues to announce packages for the industry but avoid balancing the tax regime which is tilted towards non-productive sectors, it said.

The share of the industrial sector in GDP is 17 percent but it is made to pay taxes up to 73 percent while the combined share of trade and transport in the GDP is also 17 percent but it is paying only 1.2 percent tax, said Dr Murtaza Mughal, President PEW.

The share of agriculture in GDP is 21 percent but the tax collected from this sector is mere one percent due to political reasons, he said, adding that stock market capitalisation is almost 28 to 30 percent of the GDP but this sector enjoys tax the burden of 0.03 percent which is unjustified, he said.

Dr Murtaza Mughal said that the government can easily collect up to Rs500 billion tax from wealthy brokers but it is being avoided since long for obvious reasons.

The volume of trade activity in the country is double than the exports but the authorities are avoiding to bring this sector in tax net knowing that traders also sell undocumented and smuggled items.

Due to rampant smuggling and under-invoicing local industry is compelled to show reduced production to remain in the business while professionals like chartered accountants, lawyers and doctors etc. are enjoying undue tax relaxations.

Other countries in the region take strong exception of smuggling and the traders selling smuggled goods are taken to task while destroying smuggled goods but this has never happened in Pakistan the way it should be, he said.

Record hike in the price of super-chilled fuel due to biting winter and other issues has prompted many global suppliers to default on their commitments and Pakistan is no exception, it said.

Following the refusal of two suppliers to provide LNG to Pakistan for February the government has sought urgent tenders for gas deliveries to fill the gap.

The government has suspended gas supply to inefficient captive power plants to cope with the gas shortages which is a right decision, said Dr Murtaza Mughal, President PEW.

He said that not only the LNG spot prices have spiked but the freight rates have also witnessed a sharp rise as rich nations are importing high quantities of gas which has added to the problems of gas importing nations.

Dr Murtaza Mughal said that Pakistan should adopt a model of long term purchase contracts and spot purchases.

Long term contracts would ensure continued supply in hard times while spot purchasing will help cut gas import bill when the price of gas is at the lower side in the international market, he said.

He noted that the government should frame a long-term energy policy to shield the masses and business community from the high price of energy, fluctuations, disruptions and highhandedness of LPG mafia.

After years FPCCI got a president who has a vast experience and will to resolve the issues confronting traders and industrialists, it said.

He seems not to be very much interested in becoming a yesman of the government and will not waste all the time on useless meetings and photo sessions, said Dr. Murtaza Mughal, President PEW.

Rather, he will utilise his expertise and energies to make life a little easy for the business community by providing input to the government on critical economic issues, try to reduce the cost of doing business in a challenging environment and fully participate in the consultation about upcoming SME and other policies.

Dr. Murtaza Mughal said that Naser Hayat Maggo is very concerned about the power sector which is eating up a sizable part of the GDP since long.

Now the power sector circular debt has surpassed the mark of Rs4.3 trillion while the gas sector circular debt has also jumped to hundreds of billions of rupees while the authorities are tacking it by a continuously upward revision of the tariff.

This policy has increased cost of doing business, made exports costly and damaged the budget of man on the street which is a great challenge for the government while the business community is looking forward to the Apex chamber to come forward and resolve this issue.

He said that FPCCI should provide implementable recommendations to the government to improve tax structure, recover agriculture and trigger industrialisation so that masses can get employment.

Dr. Mughal said that Businessmen Panel won the election with a very thin margin and it may not make it in the next election if it failed to serve the business community.

The Pakistan Economy Watch (PEW) on Friday said the 2020 was stained with inflation, unemployment, and political as well as economic instability marred the year 2020.

The year was beneficial for influential mafia, profiteers, hoarders and politicians while it saw unprecedented inflation, unemployment, instability, lawlessness and tall claims, it said.

The wheat, sugar, poultry, pharma and other mafias transferred trillions from the pockets of the poor to their accounts while the tariff of electricity, gas, price of petrol and food further damaged the masses, said Dr. Murtaza Mughal, President PEW.

He said that masses were burdened with heavy taxes during the outgoing year while the practice of rewarding nobility through tax breaks worth hundreds of billions continued.

Millions lost their jobs and businesses while many more saw cutr in their incomes at a time when the price of almost everything rose exponentially breaking all previous records.

Record erosion in the exchange rate took toll on masses as well as the economy and trillions were wasted on fancy projects and deliberate delay in import of wheat, sugar, LNG and other needed items.

He said that people were kept waiting for five million houses, 300 dams, millions of jobs, billions of trees, and quality health and education facilities in 2020 but to no avail.

The unending list of the broken promises, U-turns, incompetence and corruption has come as a rude shock to the nation and the supporters of current dispensation have realized that intoxicating election promises and aspirational songs were nothing but deceit, he said.

Economic stability requires better insurance penetration: Abdul Haye
Compulsory third party motor, group medical insurance needed in Pakistan: IAP

Former Convenor FPCCI Central Committee on Insurance Dr Murtaza Mughal on Saturday said the insurance industry has failed to deliver amid pandemic calling for new products and reforms in this sector so that it can deliver in challenging environment.

Talking to Senior Vice Chairman Insurance Association of Pakistan (IAP) and CEO Alfalah Insurance Abdul Haye and other industry experts, Dr Murtaza Mughal said that claims are being avoided because the policies were not designed to pay out when there is a pandemic; and if paid, it will push service providers to insolvency.

He said that insurance is meant to act as a safety net for people and businesses but presently some type of government-backed scheme is needed.

He said that SECP and Insurance Association of Pakistan (IAP) must join hands to boost the insurance sector so that it can play its due role in the national development while improving the insurance penetration which is a prerequisite for a stable economy.

He emphasised on increasing insurance penetration in Pakistan which is less than 1 percent of the GDP as against the global average of around 5 to 6 percent.

Dr. Mughal who is also president of Pakistan Economy Watch stressed on the need of implementation of compulsory third party motor insurance and compulsory group medical insurance in Pakistan which is pending with SECP since 2018.

He was of the view that annually almost 20,000 people die in road accidents while many more get injured and they are not compensated.

CEO Alfalah Insurance Abdul Haye was of the view that in wake of current pandemic private employers having more than 50 employees should provide health insurance cover to their staff while enforcement of compulsory group life insurance in Pakistan for companies should be considered.

The participants emphasised on adoption of uniform laws governing insurance sector as different provinces are following different rules and regulations creating problems while business ethics should be stressed.

Satwat Butt, former chairman Regional Committie North IAP, Chairman Lahore Insurance Institute Muhammad Hisham and Altimash Malik, GM UIC and others were also present in the meeting.

Share of insurance in GDP very low
Pakistan virus-related losses Rs2.5 trillion

Director General Federal Insurance Ombudsman Mubashir Naeem Siddiqui has said that the insurance sector plays a very important part in the national development however the pandemic has increased its importance manifold.

Despite the importance of insurance its share in the GDP is low which can be increased through efforts in the right direction, he said.

Talking to Dr. Murtaza Mughal, President of Pakistan Economy Watch and former Chairman FPCCI Central Insurance Committee on Insurance, Mubashir Naeem Siddiqui said that the Insurance Ombudsman is providing valuable services to the society and protecting the rights of policyholders which will help improve this sector.

He noted awareness is being created among the masses and disputes are being resolved amicable which is benefitting all the stakeholders.

On the occasion, Dr Murtaza Mughal said that the second wave of corona virus has frightened the world as not a single country is insulated from the pandemic.

He said that pandemic has inflicted a loss of almost 12 trillion dollars to the global GDP while annual losses in Pakistan have been estimated at Rs2.5 trillion and the losses will continue in 2021.

Insurance companies all over the world are trying to face the challenges of pandemic by introducing new products but Pakistani insurance sector is far behind in this race, he observed.

Local insurance companies should provide maximum relief to the virus-hit people and businesses which is also good for their businesses, he demanded.

Islamabad :The Pakistan Economy Watch (PEW) on Tuesday said FPCCI is going through a crisis of leadership and vision since long which has disappointed the voters.

Many businessmen are not very keen to participate in the upcoming elections while others are undecided to vote for United Business Group (UBG) or Businessmen Panel (BMP) as both have failed to come up to their expectations, said Chairman Pakistan Economy Watch Brig. (retd) Aslam Khan.

He said that UBG ruled FPCCI for five years but failed to bring any meaningful change. BMP realised their failure and came to power by promising a change but their slogan never translated into reality.

Both the groups have failed to improve working and image of the FPCCI and both have bulldozed merit during their tenures resulting in a disaster, he added.

Aslam Khan noted that just three weeks have left in the FPCCI elections but UBG and BMP have failed to announce their manifesto while both groups are facing problems to find candidates.

UBG could not find a single candidate to run for the post of Vice President from the province of Balochistan while the BMP has no candidate for the slots of vice presidents from five constituencies including Sindh, Balochistan, Capital Area, Small Chambers and seat for Women.

Time is running out and even if BMP finds candidates it will be very difficult for them to reach out to voters due to time constraints, he observed.

Aslam Khan said that since years whoever made President FPCCI put the issues of the business community on the backburner and start pleasing the government aimed at personal welfare.

Therefore many important sectors of the economy have established their own associations which are more efficient than FPCCI, he said.

FPCCI is suffering from a serious crisis of leadership and vision since long which has damaged its reputation with no ray of hope in sight.

ISLAMABAD, The Pakistan Economy Watch (PEW) on Saturday said the agriculture sector cannot progress in absence of meaningful land reforms delayed since decades.

Land reforms were initiated in the 70s after which this critical has been ignored by all the governments which has inflicted heavy damage on the agriculture sector and and resulted in food security issues.

The fall of agriculture has not only squeezed the income of farmers but also eroded the buying power of masses while the gulf between landed elites and farmers is expanding, said Dr. Murtaza Mughal, President PEW.

He said that almost 23 percent of agricultural land in Pakistan is owned by one percent rural nobility while 43 percent land is owned by farmers having few acres.

Dr. Murtaza Mughal said that all the schemes are designed to suit aristocracy while majority of the farmers are left on the mercy of climate, different mafias and loan sharks.

He said that the budget for research and development is insignificant, output is almost zero while only two crops, wheat and sugar enjoy support price.

The powerful sugar labboy has increased the area under cultivation of sugarcane by 14 percent since 2004-05 while Cotton’s area under cultivation has been decreased by 26 percent exposing the entire textile chain and millions of jobs at risk.

The failure of authorities has left Pakistan with no option but to import 2.5 million tonnes of wheat, 0.5 million tonnes of sugar and five million bales of cotton which will cost billions of dollars and may stoke a balance of payment crisis, he feared.

Says power agreements crippled industry, agriculture and masses, demands forensic audit of IPPs, entire power system

ISLAMABAD: President Pakistan Economy Watch (PEW) Dr. Murtaza Mughal has said that former governments inflicted irreversible harm to the power sector by signing highly controversial power purchase agreements with the private sector that crippled masses, industry and agriculture.

In a statement on Sunday, he said the deals not only resulted in unbelievable profits for the private power sector but also increased tariff by 25 to 30 percent as compared to regional countries badly hitting the economy.

Dr. Murtaza Mughal said the former governments violated PPRA rules, third party audit system and established power plants hundreds of miles away from the source resulting in phenomenal losses.

Power production was focused while transmission and distribution was ignored that resulted in production of 38 thousand megawatts of electricity while the system was only able to transmit 16 thousand megawatts of electricity, he added.
President PEW said the government was bound to pay billions to the IPPs despite the fact that thousands of megawatts of electricity was not used by it. The former governments signed sovereign agreements with IPPs burdening masses and itself under unsustainable debt, he said, adding that the current government inherited Rs1.2 trillion in the infamous circular debt which has been doubled in its tenure.

The swelling circular debt indicated that inherited problems could not be resolved and it continues to haunt the economy, he noted.

Dr. Murtaza Mughal said that the action initiated by the government against IPPs seems to be stopped which must be initiated again and a forensic audit of the entire power system should be conducted to verify their claims.

ISLAMABAD – The Pakistan Economy Watch (PEW) on Monday lauded to move of the Prime Minister Imran Khan to restructure state-run companies which are inflicting losses to the tune of trillions.

In case of success, the government will save hundreds of billions of rupees being spent to keep these institutions artificially alive, it said.

Pakistan cannot progress unless it strikes a balance between income and expenditures for which tackling failed companies is necessary, said Chairman Pakistan Economy Watch Brig. (retd) Aslam Khan.

He said that loss-making entities are getting more funds than being spent on defence of the country while all the money is going down the drain which cannot be justified.

Almost all the governments over the last forty years have tried to turnaround SOEs or sell them but the experience of privatization has left much to be desired.

Therefore, now the Prime Minister has decided to introduce a mixed ownership model by dividing these companies into smaller companies and appoint their management on merit.

He informed that there are about 200 SOEs in Pakistan having an impressive assets base but their only contribution is the employment of half a million people at a staggering loss to the national exchange.

Their mismanagement and operational inefficiencies have touched unimaginable heights. They have been causing heavy losses to the national exchequer in the shape of subsidies, bailout package and financial assistance.

Conspiracies by Modi administration cannot dent Pak-China ties

The Pakistan Economy Watch (PEW) on Friday said India is digging its grave by opposing the multi-billion dollar project CPEC which is a reality.

Conflicting this project amounts to committing suicide, therefore, India should become part of it or become unconcerned towards it, it said.

The conspiracies by Modi administration cannot dent Pak-China friendship and increased economic cooperation, said Dr. Murtaza Mughal, President PEW.

Damaging a sixty billion dollar project by allocating sixty million dollars for terrorist activities is a dream which will never come true, he added.

Dr Murtaza Mughal said that India is not only dancing on the tune of some global powers but it is also against increased Chinese presence in Pakistan which will deprive her of opportunity to attack our country.

Chinese presence in Gwadar will secure our seas while the CPEC route will foil her unholy designs in Gilgit-Baltistan helping Pakistan to allocate status of a province to that important region.

The project will bring all the countries in the region closer and help them develop rapidly while India blinded by the enmity of Pakistan will be left alone, he observed.

He noted that China has finalised a deal with Iran which has wasted billions of dollars on Indian investment and now India is trying to settle the score with China for its humiliating defeat in Ladakh on Pakistani soil.

We must realise that the success of CPEC is linked to the prosperity of Balochistan therefore no stone should be left unturned to bring this province in the national mainstream, he demanded.

Replacing cotton crop with sugarcane be discouraged
Buying costly gas to hit the industrial sector

The Pakistan Economy Watch (PEW) on Saturday said the failure of the cotton crop will cost ten billion dollars to the country.

The cotton production stands at five million bales against the target of fifteen million bales which will require import of ten million bales, it said.

Cotton import is necessary to keep the textile sector running, therefore, all the taxes and duties should be waived, said Dr. Murtaza Mughal, President PEW.

He said that the government should resolve the issues confronting the cotton sector and discourage trend among farmers to switch to sugarcane crop.

Dr. Murtaza Mughal said that licences should not be issued for new sugar mills as the production is already more than required and area under cultivation for cotton should be increased.

He said that Pakistan used to import LNG at much lower prices during 2017 and 2018 than now despite the fact that now international prices are depressed which were normal a few years ago.

Most expensive gas import contracts have been finalised at rates ranging between 16 to 18 percent of Brent crude while the gas purchased through the long-term supply arrangements by the previous government was around 13 percent.

The government should not buy costly LNG as it will hit the industrial sector and exports, he said.

The Pakistan Economy Watch (PEW) on Saturday said trillions have been transferred from the pockets of poor to the coffers of rich with the help of artificial food crisis.

The crisis is being prolonged intentionally so that the mafia can extract maximum from the struggling masses as the authorities seems fully satisfied by relying on issuing hollow statements, he said.

Inaction on the part of the federal and provincial governments have triggered fears and doubts among the large section of masses, while it is pleasing the profiteers, said Dr. Murtaza Mughal, President PEW.

He said that the decision to import wheat and sugar is not being implemented the way it should have been which is helping hoarders to fleece masses since last year.

Dr Murtaza Mughal said that amid bleak food security outlook the federation and provinces have locked horns over the wheat support price which can result in another crisis.

The federal government is ready to buy imported wheat for Rs2500 per 40kg but not ready to increase wheat support price above Rs1600 which is amazing and amounts to exploitation.

On the other hand hoarders, profiteers and flour mills mafia have been allowed to extract as much money from poor as possible.

He said that flour was available for Rs33 per kg in 2018 which is now being sold at Rs70 per kg; the price of sugar has jumped from Rs58 to Rs110 while prices of other items have also been increased burdening masses by trillions of rupees.

Moreover, he said, the electricity price was Rs10 per unit in 2018 which is not Rs20 which transferred one trillion rupees from masses to the government

Resignation of Mian Zahid termed unfortunate

Convener FPCCI Central Standing Committee on Insurance said Dr. Murtaza Mughal has resigned from his post.

He has tendered his resignation to express solidarity with the leaders of Businessmen Panel (BMP) of FPCCI who have left protesting the policies of group chairman and president of FPCCI.

It may be recalled that yesterday the Senior Vice Chairman of BMP Mian Zahid Hussain, Vice Chairman Saqib Fayyaz Magoon, central leader Allouddin Marri and Secretary General Ahmed Jawad had resigned from their posts and basic membership of the group.

These resignations were followed by dozens of resignations by business leaders representing different chamber of commerce and trade association including Senior Vice Chairman BMP Punjab Ch. Muhammad Hussain Zahid.

The resignation of Ch. Muhammad Hussain Zahid has shaken the foundations of BMP in the province of Punjab, it is widely believed.

The move has resulted in a crisis in the BMP raising questions about the future of the group and outcome of the upcoming elections of FPCCI scheduled in the end of December.

Dr. Murtaza Mughal in his resignation said that he is proud of the services of Mian Zahid Hussain, his humility and his desire to serve therefore he cannot serve in his absence.

He said that BMP leaders are showing that they are taking the resignations lightly but they will know the importance of those who have left in protest.

BMP should take the issues of the business community seriously and act according to the mandate while trying to fulfil the election promises, he demanded.

Federal Insurance Ombudsman Dr. Muhammad Khawar Jameel has said that insurance is a very import sector which provides risk coverage masses and businesses.

Despite its importance the insurance penetration in Pakistan is dismally low due to lack of awareness while less then one percent of consumers take the pain to study the insurance policy which result in disputes.

Speaking at a seminar as the chief guest which was organised by Convener FPCCI Central Standing Committee on Insurance said Dr. Murtaza Mughal, he said that he is striving hard to improve the image of the sector amongst the general public and especially in the business circles.

He said that the Federal Insurance Ombudsman is providing speedy and free of cost justice to the policyholders and that now mediation is preferred over litigation which has proved very fruitful as not a single appeal has been filed against our decisions over the last one year.

Dr. Muhammad Khawar Jameel noted that insurance has remained a neglected sector in the past but now the government is paying full attention to its development and an awareness campaign is underway.

He said that insurance companies should realise the latest trends in the market and adjust accordingly while improving their products and services.

The official noted that complaints against bankassurance are increasing which indicate room for improvement in this sector.

Speaking at the occasion, Dr. Murtaza Mughal said that there are black sheep in the insurance sector which are defaming it and impeding growth. Delaying tactics by insurance companies in processing claims is denting the confidence of masses, he said, adding that majority opt for insurance when it is a legal requirement.

He said that insurance coverage in Pakistan is less then one percent and the total premium is just 0.9 percent of the GDP against the regional average of 2.2 percent while the global average is hovering at 6.6 percent of the GDP.

This sector can only prosper if the process of product designing, sales as well as the claim process is made transparent and the issues of policyholders are addressed in a proper way.

ISLAMABAD, October 18 (Online): Chairman of Pakistan Economy Watch Brig. (retd) Aslam Khan on Sunday lauded the move of the government to promote the use of LNG in vehicles in place of CNG.

As per the plan, conversion of CNG stations to RLNG is in progress and the CNG stations will not get natural gas in future and they will use imported LNG which will bring an end to the scarcity of gas for vehicles during the winter, he said.

He said that the move of the government will reduce the oil import bill by almost 20 percent, reduce environmental pollution and fares for the masses.

Aslam Khan said that the imported LNG will be around 20 to 25 percent cheaper than petrol which will provide relief to millions of people linked to the transport sector and commuters.

This will also help the government to utilise the idle capacity of LNG terminals which is resulting in heavy losses. This will bring down the terminal charges on a unit basis while the private sector will start building new terminals by investing billions.

A sizable volume of local gas will be saved through this initiative which could be diverted to industrial sector reducing complaints and triggering production and employment.

He noted that RLNG usage should be encouraged throughout the year and the natural gas could be used for more efficient uses in the industrial and power sectors.

Govt on the forefront of economic recovery effort: PBIT
PM triggering economic activity: Tanveer Ilyas Khan

Chairman Punjab Board of Investment & Trade (PBIT) Sardar Tanveer Ilyas Khan has said that government is seriously persuing economic revival through enabling policies.

Prime Minister Imran Khan is triggering economic activity through different long-term and near-term initiatives while he has actively engaged the private sector for improved input of their problems, he said.

Chairman PBIT Sardar Tanveer Ilyas Khan said that economy has started showing signs of improvement despite challenges while the private sector is now more hopeful about an early turnaround.

Talking to Convener FPCCI Central Standing Committee on Insurance said Dr. Murtaza Mughal he said that coronavirus and other issues have severely damaged the economy which will not be offset by conventional tools like tweaking interest rates or calibrating tax slabs therefore the PM has started broad-based consultations with all the stakeholders.

He said that a new SME policy and structural reforms that will make the economy more dynamic are on the cards which will crowd in private investment and boost exports.

The prudent strategy adopted by the government helped to put the country’s economy back on a growth trajectory as indicated by many economic indicators. Many sectors including industrial sector, which was badly affected due to coronavirus, rebounded and witnessed a considerable positive growth as the Large Scale Manufacturing Industries, he said.

Khan said that on the external front, the country’s exports also witnessed positive growth during September and grew by 6 per cent on a year-on-year basis as compared to the same month of last year and the exports are expected to grow further during the month of October.

The Pakistani rupee is also getting strengthened against the US dollar due to the reduction of oil prices in the international market besides increasing inflow of remittances by the overseas Pakistanis, he said.

He said that Prime Minister Imran Khan and Chief Minister Punjab Sardar Usman Ahmad Khan Buzdar are very concerned about the economy and they are trying best to bring the price of food items.

Wheat and sugar is being imported, import of tomatoes are been started from Iran to bring prices down and a number of schemes are on cards to facilitate the growers.

Prime Minister Imran Khan has recently called for medium and long term projects for the improvement of the agriculture sector, increase in production and modernisation of the sector for improved food security which is the top priority of the government.

The prime minister wants accurate, authoritative and reliable data on production estimates of various commodities to expedite the process of activating National Food Security Dashboard in the Ministry of Food Security with the assistance of all the provincial governments and departments concerned.

Reforms in the agriculture sector, especially measures to increase agricultural production and measures to address food security challenges is on the top of his agenda and he wants a more robust and integrated system of coordination among all stakeholders, including research institutes, universities and related institutions.

At the occasion Dr Murtaza Mughal congratulated Sardar Tanveer Ilyas Khan on his appointment as special assistant to CM Punjab on the affairs related to business, investment and trade.

He said that Khan is not only a top government official and a leading businessman but also a noted philanthropist and leader of the Mughal community.

Dr. Mughal said that country needs export competitiveness more than any other thing for which no stone should be left unturned.

ISLAMABAD: FBR seems to be more interested in collecting refunds than taxes which is damaging the fragile economy while it is robbing poor to help the righ, an FPCCI official said Sunday.

The refund system should be automated and its responsibility should rest with the central bank to reduce complaints and corruption and improve the economic situation, said Convener FPCCI Central Standing Committee on Insurance said Dr. Murtaza Mughal.

He said that the government is trying hard to inject new blood in the economy and restore the confidence of the business community but the tax mechanism is working against it.

Unrealistic tax targets have compelled the FBR to strangulate the business activities through highhandedness to show performance, he added.

Dr. Murtaza Mughal who is also President of the Pakistan Economy Watch said that FBR continues to issue SROs which violates the government’s intention to spur growth.

A mini-budget is feared following the failure of the FBR measures to increase revenue on the behest of IMF, an FPCCI official said Tuesday.

The masses are business community is worried about the future as the FBR move to raise Rs637.4 billion through Finance Act 2019.20 have backfired, said Convener FPCCI Central Standing Committee on Insurance said Dr. Murtaza Mughal.

He said that tax-to GDP ration has dropped to 9.6 percent which was between 11.4 and 12.6 percent during the past five years which is a major blow to revenue collection administration.

He said that inflation is a positive sign if it is due to demand but inflation in Pakistan is due to repeated hike in power tariff, mafia, and absence of administrative control.

Dr. Murtaza Mughal who is also President of the Pakistan Economy Watch said that the central bank has also failed to contain inflation and it is now preparing for a rate hike which will hit masses, production and exports and add to poverty.

Masses cannot afford exceptional hike in power tariff
Masses should not be punished for crimes of former rulers
SBP mulling rate hike, cement mafia has created artificial shortage

Convener FPCCI Central Standing Committee on Insurance Dr Murtaza Mughal on Friday said demand of the IMF and World Bank to reduce circular debt to zero in one year should be rejected as it is contrary to the ground realities.

The demand of the lenders is not implementable as it will push the country back to the stone age, he said.

Talking to present and former President of RCCI Saboor Malik and Nasir Mirza, he said that it took decades of neglect to accumulate circular debt which can be brought down to zero in a gradual manner otherwise it will hit masses and productive sector badly.

Dr. Murtaza Mughal said that the proposal to hike power tariff by Rs6 per unit is unacceptable as a failure in undertaking reforms will leave the government with only option to hike power tariff by Rs133 per unit.

Accepting such proposals will shrink GDP, stoke unprecedented inflation and leave millions unemployed.

He said that faulty power purchase agreements were signed by former rulers, therefore, masses should not be punished for their mismanagement as the capacity payments of IPPs will surpass one trillion rupees in a few years.

He noted that former rulers as well as businessmen were involved in controversial power purchase agreements but government has not taken any meaningful action against the.

Dr. Mughal who is also President of Pakistan Economy Watch noted that there are some signs of economic stability which has prompted the central bank to mull hike in the interest rates which should be noticed.

The government has forecasted two percent increase in the GDP banking on the construction sector but the cement mafia has created an artificial shortage of the cement bring construction projects to a standstill and snatching jobs form millions of labourers.

At the occasion, Saboor Malik and Nasir Mirza said that cheap and uninterrupted energy is imperative for the national development which must be ensured.

Profiteers keeping millions hungry for earnings
Meetings, half-hearted steps will not revive agriculture

Convener FPCCI Central Standing Committee on Insurance Dr. Murtaza Mughal on Saturday said the most important sector of agriculture is crumbling due to continued disregard by the authorities.

Profiteers are also hurting this sector and keeping millions hungry for illegal profits while all the efforts to contain mafia has failed, he added.

Dr. Murtaza Mughal said that majority of the population is facing food security issues which cannot be resolved through meetings, statements and half-hearted steps.

He said that this sector is called the backbone of the economy but it is unable to provide required raw material to the industrial sector or feed growing population due to indifference of the government.

Dr. Murtaza Mughal who is also President of the Pakistan Economy Watch (PEW) said that agriculture can only be revived when issues like fake and sub-standard pesticides, seed, middlemen, food mafia and high cost of inputs is tackled.

Loansharks have also played their role in destroying this critical sector while some wealthy industrialists have also targeted this sector to make billions overnight, he observed.

Loans and other facilities are mostly enjoyed by wealthy landlords, small farmers are left in the lurch while agriculture insurance has not taken roots due to obvious reasons.

This sector must be insulated from opportunists, climate change and natural disaster while the food supply chain disrupted by virus should be restored without delay.

The rural population is not only ignored by the governments but also the media pushing them out of the mainstream and stoking poverty which must be reversed through proper policymaking, he demanded.

Billions being borrowed without any justification
Gory crimes become a challenge for the dysfunctional system

Pakistan is mired in an unsustainable debt as billions are being borrowed without any justification, an FPCCI official said Sunday.

Horrible crimes have become the order of the day due to political interference in important departments which has unnerved masses and emerged as a challenge for the criminal justice system, said Dr. Murtaza Mughal, Convener FPCCI Central Standing Committee on Insurance.

In a statement issued here on Sunday, he said that new records are being set for loans while inefficiencies have resulted in political instability.

The former government borrowed a lot but they have a long list of development projects while the current dispensation has nothing to show, he added.

Dr Murtaza Mughal who is also President of Pakistan Economy Watch said that In 2019, total debt stood at 105.9 percent of the GDP as Pakistan’s total debt and liabilities surged to Rs44.5 trillion, equivalent to 106.8 percent of GDP till the end of June 2020.

During the last two years, an average person has become poorer as the economy contracted. The economy is not growing, therefore, unemployment is rising, he said, adding that millions more have become food insecure.

The currency devaluation has increased domestic inflation making local goods more expensive while it has not increased exports as claimed.

The policy of continued hike in electricity the tariff and avoiding real reforms have made our power and gas energy more expensive than India, Bangladesh, Vietnam and other countries making production and exports costly.

The diversity of our goods sold is very limited, textiles and a few other things, and that’s all. So, we need to make it more export friendly. There are certain structural issues which need to be resolved, he said.

FPCCI Standing Committee on Insurance and Lahore Insurance Institute (LII) jointly organized an international online seminar titled, “Impact of COVID 19 on Insurance Sector – Opportunities and Challenges”۔

The webinar was attended by over 100 participants from the insurance sector and the business community of the country.

Dr Murtaza Mughal, Convenor FPCCI Central Standing Committee on Insurance

inaugurated the seminar and welcomed the participants and appreciated the initiative of LII in organizing the event.

Speaking at the occasion, Chief Guest Mr John Thorpe, Senior Vice President, Guy Carpenter Insurance Brokers explained the impact of the pandemic on the insurance sector, global reinsurance markets and insurance products like travel, health and business continuity insurance.

Mian Zahid Hussain, Guest of Honour and former provincial minister in his address stressed upon close coordination among business community.

He expressed dissatisfaction over low insurance penetration in the country and assured of full support in this regard.

Muhammad Hisham, Chairman Lahore Insurance Institute briefed the participants about business interruption insurance and its importance in catastrophic events like recent rains in Karachi.

He called upon UNDP to include Pakistan in the list of counties for the proposed Pandemic Insurance Pool for SMEs of 13 developing countries in which Pakistan has not yet been included. He also stressed upon the government to create unemployment insurance pool as prevalent in the developing world.

Mr Assad ur Rehman, CEO, Unique Insurance Brokers stressed on the need to develop innovative insurance products and embracing technology. He also requested FPCCI to play its role along with IAP in reducing heavy taxes on the struggling insurance sector.

Dr Murtaza Mughal said that the extraordinary times have opened up unique opportunities and underscored the need for risk cover at all levels of society.

Nowadays, the most common emotion being faced by each one of us is fear making us anxious and panicky.

Presently there is no cure for COVID-19 hence it is natural to feel anxious, he said, adding that health issues go hand in hand with financial issues, therefore, it is important to focus on financial immunity for turbulent times.

Health insurance is critical to ensure financial immunity to avoid disruptions in the life and finances of a person.

South Asia will be the worst affected region

Convener FPCCI Central Standing Committee on Insurance Dr. Murtaza Mughal on Sunday said hunger is overwhelming the globe in the wake of coronavirus and climate change while South Asia will be the most effected region.

Experts say that the issue of food security is worrying them and the situation in South Asia will be alarming as half of the world’s malnourished people live in this region, he said.

Similarly, the region is on the top of undernourished children which is compromising future of South Asian nations, he added.

Dr. Murtaza Mughal said that Asia and Pacific is also on the top as far as the unjust distribution of wealth is concerned which has made it a region with the most obese population.

He said that governments around the world should improve their grain storage capabilities, reduce agricultural losses, improve quality, use the latest technology and provide proper financing to the farmers.

He said that the government in Pakistan should launch a crackdown on mafia dealing in fake fertilizers, substandard pesticides and seed and try to end the role of loans sharks and middlemen in the agriculture sector.

Masses must be educated about proper diet which will jack up its demand providing an incentive to the producers, he said, adding that the recent rains have inflicted loss of billions to the economy but at the same time water worth billions have been wasted due to lack of proper water storage capacity.

Dams are very important for the economy but governments are more focused on projects which can be politically beneficial irrespective of their feasibility.

We are not left with extra time therefore the pressing issues should not be delayed and mafia should be eradicated otherwise the agriculture sector will never flourish, he warned.

Majority of projects based on political considerations
Construction of political projects on borrowed money is criminal

The Pakistan Economy Watch (PEW) on Tuesday said the tendency of politicians to prefer symbolic and fancy projects over necessary projects have inflicted heavy losses on the country.

During the last fifty years, the majority of projects were designed to please the politicians while national interests were simply compromised, it said.

Billions were borrowed for fancy projects which was criminal while health, education, provision of clean drinking water, sanitation and supporting industrial and agricultural sectors was simply ignored, said Dr. Murtaza Mughal, President PEW.

He said that the wasteful expenditure in the development sector are more evident as unnecessary high-cost projects like the BRT, metros, city trains and motorways should have cost half or less of what was spent.

Dr. Murtaza Mughal who is also Convener FPCCI Central Standing Committee on Insurance said that politicians have always ignored the issue of out of school children whose number is now 22 million and spent money on useless projects.

He said that Warsak Dam was built at a cost of 100 million dollars which has benefitted economy by 6 billion dollars, Turbela Dam is producing electricity worth Rs50 crore per day while Mangla Dam and Ghazi Brotha projects have ensured full cost recovery in three years and now they are generating handsome profit.

The National Highway and Karakoram Highway also benefit the country but Islamabad-Lahore Motorway has become a liability. It design was changed, its length was increased by fifty kilometres and it was dragged away from industrial centers to benefit a politician of Rawalpindi.

He said that politicians can never justify a dam to water 28 thousand acres over another project which was supposed to water two hundred thousand acres of land at the same cost.

As long as the approval of important projects is left to politicians and bureaucracy they will continue to play with the fate of the country therefore the project approval must include experts of good repute from the private sector, he demanded.

The neoliberal economic system proved a house of cards
Short-term gains still preferred over longterm benefits

FPCCI Central Standing Committee on Insurance on Saturday said the global economic power have not learned a lesson from the pandemic which inflicted losses to the tune of trillions of dollars to the world.

The neoliberal economic system failed to tackle virus-related losses pushing the world into chaos resulting in heavy material and social losses, it said.

The situation is now improving but it can take an ugly turn anytime and the world is not prepared for it, said Dr. Murtaza Mughal, Convenor of the FPCCI Central Standing Committee on Insurance.

He said that the faulty and fragile global economic system proved to be a house of cards amid pandemic but the majority of economic powerhouses are reluctant to take steps enabling economies and people to withstand shocks.

The economic powers are still focusing on short-term gains by paying attention to banks, stock exchanges, currency which has little to do with providing jobs or support people.

The burning issues like climate change, inequality, health, education, and sanitation are taking a back seat.

The COVID-19 pandemic response is still awaiting a well-funded healthcare system, high levels of testing, information campaigns, proper lockdowns and a proper welfare support in many countries.

Poor countries are still forced to plant flowers on millions of acres of land while most pharmaceutical companies are still more interested in creams and lotions than vaccines.

The economic powers must accept that the neoliberal economic model has failed and it has the potential to inflict further harm to humanity.

Low insurance penetration behind sluggish economic growth: Industry expert
Heavy taxation, rigid requirements keeping insurance sector weak: Hisham

Insurance sector employs more than 100,000 people directly and contributes around Rs20 billion in various taxes and duties to the national exchequer, an industry expert said Wednesday.

Pakistan insurance sector has one of the lowest insurance penetrations in the region which is holding economy back, said Muhammad Hisham, Chairman Lahore Insurance Institute

Talking to Dr. Murtaza Mughal, Convener FPCCI Central Standing Committee on Insurance, he said that policy problems are impeding growth of this critical sector which include heavy taxation of over 17 percent on most general insurance business which include high incident of taxation on health insurance.

He said that national assets are not allowed to be insured by private companies which is resulting in absence of level playing field and losses to the government.

Moreover, third party motor insurance in not compulsory in Pakistan as is mandatory in other counties, he said, adding that Pakistan has one of the lowest premium retention and premium is sent abroad mostly for large risks which causes huge foreign exchange loss to the country.

Muhammad Hisham said that federal insurance fee is not spent on development of insurance sector and training of staff and unusual compliance requirements are set for general insurance companies which are very difficult to follow by small establishments.

He said that the government should create pools for flood and natural catastrophe insurance with the help of private sector and insurance sector should be recognised as industry and incentives should be given to boost it for potential employment of another 100,000 people.

At the occasion, Dr Murtaza Mughal said that government cannot reshape economy to meet the challenges of a global marketplace unless the insurance sector is strengthened.

He said that the government should support insurance industry to boost economic activities with focus on takaful sector which is still infant as Pakistan was a late starter of takaful products.

Dr. Mughal said that the global takaful market reached a value of US$ 23.7 Billion in 2019 but it is just a few billion in Pakistan.

Documentation of this sector to improve economy

The Pakistan Economy Watch (PEW) on Saturday auded the decision of the Prime Minister Imran Khan to regulate the real estate sector by extablishing real estate regulatory authority which is a good step in the right direction.

The business community unconditionally supports the move which will safeguard rights of all the stakeholders, attract local and foreign investment and generate economic activity, it said.

The rules and regulations governing realestate sector as so weak that these are often used against the masses by real estate agents, builders and developers, said Dr. Murtaza Mughal, President PEW.

He said that masses need a break as most of the people who invest their lifetime savings for a home are looted by this mafia.

Dr. Murtaza Mughal who is also Convener FPCCI Central Standing Committee on Insurance said that there is no system for recovery of lost money and the legal battle take decades in which builders emerge victorious.

He said that this sector has become a safe heavenfor money laundering, looters, plunderers, tax evaders and those who have accumulated billion of ill-gotten wealth.

At the occasion, Chairman Pakistan Economy Watch Brig. (retd) Aslam Khan said that regulating property sector was long overdue and the success of PM’s moves to boost construction and housing sector depends on the transparency in this sector.

Regulating the realestate sector will lure reputable businessmen and attract local and foreign investment, he said.

He added that all the major cities will remain hunting ground for unscrupulous builders supported by by corrupt politicians and a bureaucracy that acts as the latter’s handmaiden unless proper regulations are not introduced.

Economic development through construction wishful thinking: Dr Waqar Masood
Wheat crisis engulfing entire country due to mismanagement: Mian Zahid Hussain
Govt lack experts who can take timely, correct decisions: Dr. Murtaza Mughal

Economic experts and business leaders on Friday lauded the PM Imran Khan’s move to develop the construction sector but cautioned that focus on only one sector will not revive economic activities.

They said all the important sectors deserve attention but the government lacks economic experts who can take timely and correct decisions based on ground realities.

Speaking at a seminar organized by FPCCI Central Standing Committee on Insurance, former federal secretary finance Dr. Waqar Masood Khan, former provincial minister, and convenor FPCCI Mian Zahid Hussain, Convenor of the FPCCI committee Dr. Murtaza Mughal, Chartered Accountant Tariq Hussain and others said that the economy is without direction which is hitting almost every sector.

They said that the government has disappointed masses while instability, inflation, and anxiety is increasing in the masses.

The government seems more interested in bashing the former rulers and less inclined to provide relief to the masses, they added.

The participants said that mafia has taken economy and masses as a hostage, the government promise to reduce prices but there is nothing on the ground and nothing has been done to deter the profiteers.

The growth rate during 2017-18 was 5.8 percent but the consumption of petrol was less than what was consumed during the last month amid negative growth rate but the issue in which billions were plundered was hushed up.

Similarly, the consumption of cement has also raised many eyebrows but to no avail which indicate collusion in mafia and authorities.

The speakers said that the wheat crisis has surfaced again and it is engulfing the whole country for which the mafia as well as the inefficiency and mismanagement of the rulers are to be blamed.

Coronavirus has not damaged Pakistan as it did in the developed countries which is a blessing otherwise the situation would have been different, they said, adding that the threat of another wave of locust seems not enough to unite federal and provincial governments for a coordinated response.

Dr. Murtaza Mughal who chaired the seminar said that coronavirus has brought to limelight the need for health insurance which should be made mandatory by the government.

He said that almost eight percent of the vehicles in Pakistan are not insured therefore vehicle insurance should also be mandatory which will benefit masses, and stabilize the insurance industry.

Other participants included Makhdoom Taseer, Qazi Asif Sayeed, Muhamad Arif, Sadruddin, and Mr. Ishtiaq.

Trusting the private sector to unleash another crisis
Import of sugar should be allowed to frustrate mafia

The Pakistan Economy Watch (PEW) on Saturday asked the government not to depend on the private sector to balance shortage of staple and initiate wheat and sugar imports by itself without further delay.

The government has allowed import of ten million tonnes of wheat which is a good decision but the volume should be increased to fifteen million tonnes to calm the market and foil the unholy designs of the mafia, said Dr. Murtaza Mughal, President PEW.

He said that presently the price of wheat in the international market is affordable therefore imports should not be delayed.

Dr. Murtaza Mughal who is also Convener FPCCI Central Standing Committee on Insurance said that government should cancel permits and impose heavy fines on those businessmen who are delaying wheat imports as they are part of the mafia.

He said that sugar mills mafia continue to exploit government, masses, and farmers for decades. Their activities should be countered by allowing the import of sugar without any regulatory duty.

The influence of sugar mafia will deter many from importing sugar while private parties may not like to take the risk of importing the sugar due to availability of unknown quantity sugar stocks with the sugar mills.

Therefore, he said, Trading Corporation of Pakistan should be tasked for importing sugar which should be supplied to masses, whole-sellers, and retailers through Utility Stores Corporation.

The government should also establish the sale points across the country so that masses can get edibles at affordable prices, he suggested.

This is the only way to force sugar barons to bring their hidden stocks of sweetener to the market which will stabilize its price.

The government should realize the enormity of the challenges facing agriculture and make efforts to overcome them to ensure food security and avoid expensive spillover effects on the country’s social, economic and political system, speakers at a workshop said.

There has been no significant impact of Covid-19 on the agriculture sector which recorded a remarkable growth of 2.67 percent in 2019-20 compared to 0.58pc growth achieved last year except for cotton and sugarcane crop, said Dr Murtaza Mughal, President of the Pakistan Economy Watch (PEW) and Convener FPCCI Central Standing Committee on Insurance.

Speaking to the workshop organized by the Rural Development Foundation (RDF), has said that water scarcity, substandard seed and fertilizers and recent locust outbreak resulted in heavy losses to the main crop production areas in Balochistan, Punjab, and Sindh provinces.

Over 115,000 hectares of crops including wheat, oilseed crops, cotton, gram, fruits, and vegetables, besides grazing field have been damaged and another wave of the locust is also expected while federal and the provincial governments are too busy to do something serious about it, he added.

Dr. Murtaza Mughal said that the agriculture sector has the capacity to not only produce for the domestic population but to have surplus production for exports which can contribute towards foreign exchange earnings for which development of rural areas, filling productivity gaps and improving value addition is imperative.

The former government launched the much-needed food security policy towards the end of its tenure but the current government has so far not started implementing that policy for attaining sustainable agricultural growth and ensuring food security of a rapidly growing population, he said.

Director RDF Brig (retd) Aslam Khan said that that the incumbent government has rolled out an agricultural revival package, but with less input from Sindh, the country’s second-largest food-producing province which is a matter of grave concern.

Masses paying Rs45 tax on every liter of petrol
Devaluation, inflation tools to boost revenue

The Pakistan Economy Watch (PEW) on Saturday said the entire burden of pandemic and financial crisis has been shifted on the poor masses which has added to their problems.

Many countries have increased taxes on rich to tackle coronavirus-related losses but here masses are being made to pay, it said.

Masses are paying Rs45 tax on every liter of petrol which must be reduced immediately, said Dr. Murtaza Mughal, President PEW and Convener FPCCI Central Standing Committee on Insurance.

He said that devaluation and inflation are two tools to boost revenue but it remained counterproductive during the last two years despite forty percent erosion in the exchange rate and imposing new taxes of Rs1000 billion.

The devaluation has not helped boost exports but taxes masses in a way which has compromised their buying power beyond their capacity.

Interest rates were kept high to attract hot money which benefitted foreign investors at the cost of the local economy while bonds worth Rs121 billion were issued on high interest rates a day before interest rates were slashed by one percent which is amazing, he said.

The completion of Peshawar metro has become a dream despite a 100 percent hike in the cost of the project while the outcome of inquiries against sugar, wheat, IPPs, medicine price etc. have also become a dream which may never come true.

The tariff of electricity is being hiked across the country after Karachi which will jolt the economy while another gas price hike is also on the cards which will unleash a new wave of inflation, he warned.

The Pakistan Economy Watch (PEW) on Tuesday said government has no justification to remain in power as it has failed to deliver and added to the miseries of masses.

Mafia cannot operate without the full patronage of the government and it cannot continue business for a single day without support of authorities, he said.

Dr. Murtaza Mughal, President PEW who is also Convener FPCCI Central Standing Committee on Insurance said that politicians and mafia have always remained close to each other but now masses are facing an unprecedented alliance between the two which has made their life very difficult.

While government and mafia seems to have teamed up against poor masses the attitude of opposition leaders has left much to be desired agitating many.

Those who matter should look into the situation as mass unrest and massive protests are unavoidable with serious consequences for the ruling elite.

He noted that ministers are doing nothing but issuing flowery statements, providing lame excuses for crises and condemning former rulers for everything which is not enough to calm enraged masses.

Those who voted for the ruling cabal are no more able to defend the actions of the government and the popularity of the PTI is on the lowest ebb, he said.

Mr. Mughal said that masses have braved over half a dozen crisis engineered by mafia that include flour, wheat, poultry, medicine and petrol crisis and now they will see LPG and other crisis within days.

The government which is dancing on the tunes of IMF is set to increase gas tariff substantially any time soon which will open flood gates for inflation, he warned.

The government claims to make Pakistan an Asian Tiger but its actions is pushing country into Stone Age, he said.