Govt misguided IMF on SBP autonomy: PEW
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Central bank becomes puppet of Government
The Pakistan Economy Watch (PEW) on Monday said government misguided IMF on the issue of autonomy of State Bank of Pakistan which is evident from the recent monetary policy statement.
The central bank’s statement is based on concoction which has put its repute to question, it said.
The SBP should not act as mouthpiece of the government to misguide masses about so called economic success, said Dr. Murtaza Mughal, President PEW.
In a statement issued here today, he said that newly constituted independent monetary policy committee of the central bank has failed to present factual picture of the economy and opted to misled masses.
The report praised increased income of the government and revenue measures ignoring that Pakistan tops list of countries with most petroleum taxes, he added.
Moreover, he said, the statement also revenue measures have nothing to do with the government’s resolve to expand tax net as new taxes worth Rs 40 billion were slapped on the behest of IMF.
Dr. Murtaza Mughal said that the Bank also praised government’s policy for increased credit offtake by private sector while trying to hide reasons behind falling exports.
The bank should have pointed towards weaknesses in the system and recommended ways and means to overcome it.
Dr. Murtaza Mughal also criticised small cut in the prices of petroleum products terming it an insult to the masses. Rejection of the Ogra summary regarding cut in POL prices proves that government prefer its interests over interests of masses.
