Silence of opposition, IMF over Govt’s wild borrowing assailed
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Delay in CSF compensation by US to create serious problems for Pakistan
The Pakistan Economy Watch (PEW) on Monday said US has been intentionally hurting Pakistan’s weak economy to realise its unholy designs in the region.
An economically sound and stable Pakistan is not in the interest of Washington that need a weak country which can dance on their tunes, said Dr. Murtaza Mughal, President PEW.
He said that State Bank of Pakistan is left with almost three billion dollars of forex reserves enough to meet import bill for a month after which situation can deteriorate rapidly.
On the other hand, government has failed to introduce policies which can boost reserves, bar flight of capital, broaden tax net or lure investors, he said.
Dr Murtaza Mughal said that incumbent rulers have been following policy of predecessors by claiming to broaden tax net and cut expenditures but relaying on borrowings which has triggered inflation and humbled rupee.
This shortcut to raise funds have crowded out private sector of the credit market and annoyed business community while the opposition as well as the IMF has preferred to remain silent over the issue, he noted.
In such a grim situation, said Dr Murtaza Mughal, the US has been unnecessarily delaying disbursement of US 1.5 billion due as Coalition Support Fund.
Americans have developed a habit to stop payment of dues but an obstruction at this critical juncture simply means that US want Pakistan to default on its obligations.
The reluctance of Americans has also resulted in unwillingness on the part of other donors while the brotherly Islamic nations are following the dictates of Washington which is pushing situation from bad to worst.
