Government avoided economic reforms for years: PEW
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Bold decisions unlikely in the election year
The Pakistan Economy Watch (PEW) on Tuesday blamed that PML-N led government for avoiding meaningful economic reforms for many years which has resulted in a difficult situation.
The former Prime Minister Nawaz Sharif avoided reforms despite the insistence of experts and foreign institutions while the current administration cannot afford difficult decision due to the election year, it said.
Increasing imports, reduced exports, swelling current account deficit and absence of foreign investment has added to the deficit which has touched alarming proportions, said Dr. Murtaza Mughal, President PEW.
He said that now the government cannot take the unpopular decision which leaves it with only choice to secure foreign loans as the foreign exchange reserves have eroded significantly.
During the current year, the repayment of loans would eat up the large portion of export earnings which could be countered through good growth rate and enhanced exports but the chance was missed.
Dr. Murtaza Mughal said that the benefit of reduced oil prices was not used to strengthen the economy and now the country is fast slipping into an unmanageable debt trap.
The ongoing political turmoil does not augur well for the economy, democracy and developmental indicators in every sector, he said, adding that the worst affectees were no one but the common man.
He said that if political turmoil persisted then every person would have to bear the brunt.
