23. 05. 18
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Policy of settling disputes through tariff will not work
Poor countries will pay the price of US-China trade war
The Pakistan Economy Watch (PEW) on Sunday said US policies have threatened global growth rate, confidence, and investment.
The policy of settling trade dispute by using tariffs as a weapon will not work as it has endangered millions of jobs worldwide, it said.
Poor nations will pay the price of the trade war between America and China initiated by the US President Donald Trump, said Murtaza Mughal, President of PEW.
He said that global economic contraction will create uncertainty and may pose a threat to the peace, therefore, tensions between two major economic should not be taken lightly.
Murtaza Mughal said that US policies have undermined global institutions like IMF and WTO while investors are uncertain about America.
The tensions have suspended an investment of 400 billion dollars in the US and China while the stalled investments in Europe, Asia, and Africa etc. cannot be calculated at this juncture.
US companies have invested 256 billion dollars in China while Chinese companies have invested around 140 billion dollars in the US which is under risk.
He said that initially the US seems to be facing more losses and it is impossible for her to win this war, therefore, issues should be settled through dialogue.
Pakistani policymakers should analyze the situation and make a strategy which suits our own interests, he demanded.
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10. 05. 18
Policies should not be altered to suit individual
Masses to pay Rs20 billion to benefit a lobby
The Pakistan Economy Watch (PEW) on Wednesday said government policies have reduced the area under cultivation and production of oilseeds which is being compensated through enhanced imports draining forex reserves.
The continued reduction in oilseed production indicates lack of interest on the part of planters which is a very dangerous trend, it said.
Talking to the President of a farmers representative body Jan Nisar Khalil, VP of Anjuman-e-Kashtkaran Ch Muhammad Yasin and others, Dr. Murtaza Mughal, President PEW said that policy to please the nobility has damaged the agricultural sector once considered the backbone of the economy.
Giving an example, he said that the import of oil seed has increased from 7.5 lakh tonnes to 31 lakh tonnes over the last five years because it suits an influential lobby which is a drain on the forex reserves.
The unabated imports have discouraged farmers of oilseed resulting in a reduction of 2.5 lakh tonnes of oil production in the last few years.
Dr. Murtaza Mughal said that the government has increased duty on import of soybean oil by 32.6 percent in the budget which has increased its price.
The decision will encourage the import of oilseed to five million tonnes in the next twelve months hitting exchequer, masses, and farmers.
The government will have to bear the loss of around twenty billion rupees in one year on account of reduced duties and taxes on import of oil seed while the masses will also pay an additional amount of twenty billion due to the increase in the price by Rs5 per kg of ghee and cooking oil.
He said that how come the farmers can fetch a reasonable price for oil seed production when imported oilseed is so heavily subsidized which has triggered shifting of planters to other crops.
The government should not promote influential, rather it should give subsidy to farmers which will improve their lives, ensure low-cost edible oil to the masses and add to the GDP.
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In: UncategorizedAuthor: pakistaneconomywatch
07. 05. 18
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LNG and other power projects failing to generate electricity
Mismanagement in the ailing power sector a threat to the economy
The Pakistan Economy Watch (PEW) on Sunday said despite low oil prices the circular debt has crossed the mark of Rs 1000 billion emerging as a grave threat to the economy.
LNG and many other power projects have failed to deliver raising concerns about investments to the tune of billions of dollars, it said.
Political interference, mismanagement, and secrecy has damaged the power sector resulting in circular debt which is draining the resources, said Murtaza Mughal, President of PEW
The unaddressed circular debt is to compromise growth and hitting masses with power outages in the summer which is contrary to the claims of production of electricity to the tune of 25 thousand megawatts; more than the national demand.
Dr Murtaza Mughal said that the debt has become a big threat to the image, credit rating and economic survival of the country. It is hitting industrial expansion, investment in Thar coal and other energy projects and pushing away investors while it is leaving IPPs unable to buy fuel or repay bank loans.
The chronic circular debt hits ability of the government institutions to buy fuel resulting in problems including loss of around Rs 400 billion to the industrial sector, increase the cost of production, reduce exports and tax collection and fan restlessness.
Things are seriously wrong deep inside the energy sector and the way it is managed by the government. Various measures the present government has taken have failed to deliver.
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