28. 09. 19
Promoting imports at the cost of local industry assailed
The Pakistan Economy Watch (PEW) changed sales tax laws have reduced the price of imported raw material as compared to the raw material produced in the country which has put the future of hundreds of industrial units at stake.
The development is resulting in wastage of foreign exchange, it will reduce revenue and increase unemployment, it said.
The companies producing raw material for the textile industry that includes yarn, grey cloth, and cotton, etc. are under the threat of closure and bank defaults, therefore, the laws should be reviewed, said Dr. Murtaza Mughal, President PEW.
He said that the textile industry is preferring import of raw material after the withdrawal of the facility of zero-rating which has reduced demand for manufacturing material threatening a large industrial segment.
Dr. Murtaza Mughal said that no duties are imposed on the import of raw material while there is seventeen percent sales tax on local units producing the raw material. These units have to wair for nine months to get refunds which add to their cost of doing business.
He said that some elements are also getting the benefit of the current policy and they are importing finished products in the garb of raw material which should be discouraged.
Foreign manufacturers should not be given preference over the local manufacturers as it has started to hit demand for raw material including cotton which will hit troubled growers, he demanded.
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In: UncategorizedAuthor: pakistaneconomywatch
23. 09. 19
New Delhi spending billions to destabilise Pakistan
A water-sharing treaty can evade Pak-Afghan war
Support for KBD by former opponents welcomed
The Pakistan Economy Watch (PEW) on Sunday said India is using water resources of Afghanistan as a weapon against Pakistan which should be countered.
India is supporting the construction of twelve dams in Afghanistan which will reduce the availability of water resulting in severe consequences to the masses, agriculture, and industry, it said.
A water-sharing agreement between Pakistan and Afghanistan has become imperative otherwise water issue can spark a war, said Chairman PEW Brig. Muhammad Aslam Khan (Retd).
In a statement issued here today, he said that India is employing everything in her power including water terrorism to destabilise Pakistan for which billions of dollars are being spent.
He said that Pakistan is getting 25 million acre-foot water from River Kabul while India wants to reduce the water supply as much as possible to damage Pakistan.
Brig. Aslam said that Afghanistan has every right to use water for the welfare of the population as seventy-two percent of Kabul residents have no access to the clean water, but Afghanistan has no right to become a destabilising tool for New Delhi.
The Kabul River and its tributaries provide an important source of livelihood for nearly 25 million people living around the basin and that population is expected to increase to 37 million by 2050, he said.
He noted that some of the opponents of Kalabagh dam have shown some flexibility which is very heartening.
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In: UncategorizedAuthor: pakistaneconomywatch
21. 09. 19
Acting MDs avoiding important decisions
Power struggle hurting both institutions
The Pakistan Economy Watch (PEW) on Friday said the slots of full-time managing directors of both the gas utilities are lying vacant for eight months which is hurting both the institutions.
The Prime Minister Imran Khan fired MDs of SNGPL and SSGC on January 8, 2019, following an inquiry into a nationwide gas crisis in December 2018, it said.
Since January 2019, both the gas utilities are being run by acting MDs while the laws require to fill these important posts within three months, said Dr. Murtaza Mughal, President PEW.
He said that different important persons are struggling to get their favourite officers appointed on the coveted posts which is delaying the process that is taking a toll on the institutions and the economy.
Dr. Murtaza Mughal said that the vacancy of MD SNGPL has been advertised for three times on 24th of March 2019, 4th August 2019 and 11th Sept 2019 and criteria was changed every time flouting clearly laid out rules and regulations which must be noticed.
The process for hiring a new managing director of the SNGPL has become highly controversial and the ongoing power struggle is hitting the morale of seven thousand employees of the company.
He said that presently the performance of the company is on the lowest ebb, important matters are awaiting a decision and uncertainty is resulting in heavy losses which will be shifted on masses already reeling under inflation.
Prime Minister Imran Khan should take notice of the situation and intervene to improve the working of gas utility by appointment of MD on merit, he demanded.
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In: UncategorizedAuthor: pakistaneconomywatch
12. 09. 19
Urea price hike to damage agriculture sector
The Pakistan Economy Watch (PEW) on Wednesday said continued hike in the price of sugar in acceptable which amounts to the exploitation of masses reeling under inflation.
The sugar which was being sold at a price of Rs45 per Kg is now available at Rs80 which is condemnable, it said.
The price of sugar is being increased without justification, while the sugarcane growers are not benefitting from it, said Dr. Murtaza Mughal, President PEW.
The growers are facing exploitation by the sugar millers which is not being noticed, he added.
Dr. Murtaza Mughal said that the price of urea is set to increase by Rs200 per bag which will hit the agriculture sector and increase the cost of production.
He noted that the government has set a target of inflation at six percent but it jumped to double-digit in February and now it is at 11.63 percent while prices of many items have registered 30 to 40 percent increase.
Price of every necessity is increasing while the role of the government is confined just to issue daily rates and leaving the consumers at the mercy of shopkeepers.
This is despite the fact that except for a few limited items, the bulk of the food and necessary edible supplies are domestically produced but not properly managed.
The producers are allowed to sell their products in the market at any price they can derive as the administrative mechanism exists in books only.
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In: UncategorizedAuthor: pakistaneconomywatch
09. 09. 19
Revenue shortfall may result in mini-budget
The Pakistan Economy Watch (PEW) on Sunday said tabdili is not going down well with masses and businessmen while hasty and nervous decisions by the government is hitting the confidence of the business community.
It said that economic indicators are worsening which is adding to the anxiety of the masses and business community.
Inflation is gaining momentum hitting poor and middle class but authority seems unconcerned, said Dr. Murtaza Mughal, President PEW.
He said that private investment has reduced from 10.3 percent in 2018 to 9.8 percent which will slide further.
Dr. Murtaza Mughal said that the private investment target has been reduced to 10.1 percent which is difficult to manage.
He noted that investment in large scale manufacturing has also been reduced while production has gone down by 54 percent.
Foreign investment has reduced by 36 percent and foreign investors are taking back their money which is at 11 percent.
He said that lack of continuity in policies have taken a toll on the economy while the situation in Kashmir has also played its role to push away investors.
The price hike has become order of the day due to week system of price control on the federal and provincial level.
Dr. Mughal said that the number of filers has increased by seven hundred and eighty thousand but the collection has jumped by only Rs2.5 billion which will result in a mini-budget as the revenue shortfall for the months of July and August stands at Rs64 billion.
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In: UncategorizedAuthor: pakistaneconomywatch
08. 09. 19
Revenue shortfall may result in mini-budget
The Pakistan Economy Watch (PEW) on Saturday said hasty and nervous decisions by the government is hitting the confidence of the business community.
It said that economic indicators are worsening which is adding to the anxiety of the masses and business community.
Inflation is gaining momentum hitting poor and middle class but authority seems unconcerned, said Dr. Murtaza Mughal, President PEW.
He said that private investment has reduced from 10.3 percent in 2018 to 9.8 percent which will slide further.
Dr. Murtaza Mughal said that the private investment target has been reduced to 10.1 percent which is difficult to manage.
He noted that investment in large scale manufacturing has also been reduced while production has gone down by 54 percent.
Foreign investment has reduced by 36 percent and foreign investors are taking back their money which is at 11 percent.
He said that lack of continuity in policies have taken a toll on the economy while the situation in Kashmir has also played its role to push away investors.
The price hike has become order of the day due to week system of price control on the federal and provincial level.
Dr. Mughal said that the number of filers has increased by seven hundred and eighty thousand but the collection has jumped by only Rs2.5 billion which will result in a mini-budget as the revenue shortfall for the months of July and August stands at Rs64 billion.
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In: UncategorizedAuthor: pakistaneconomywatch
01. 09. 19
The Pakistan Economy Watch (PEW) on Saturday lauded the decision to provide relief of over Rs300 billion to the industrial sector.
The government has waived liabilities and cancelled late payment surcharges pertaining to the Gas Infrastructure Development Cess (GIDC) through an Ordinance, it said.
Waiving half of the liabilities of fertiliser, textile, power generation, and CNG sectors will provide them with some space while it may help these sectors to cut prices, said Dr. Murtaza Mughal, President PEW.
He said that GIDC has been reduced to 75 percent which can result in the reduction in the price of fertilizer, electricity and CNG.
Dr. Murtaza Mughal said that the decision would have gone down well with the masses if they would have been provided with some relief.
He said that the government is confronted with a budget deficit of Rs3.445 billion while the deficit target has been missed by 82 percent which is the result of frequent changes in policies, political instability and lack of focus by authorities.
Inflation and deficit continue to increase while revenue is stagnant which indicate that increase regulatory duties, devaluation, two mini budgets, and other steps have not provided any results except for adding to the miseries of the masses.
Similarly, an extraordinary hike in the price of fuel, gas and electricity have remained counterproductive, he said.
The government should be focused on how to save people representing poor and lower-middle classes from the brunt of the economic crisis.
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In: UncategorizedAuthor: pakistaneconomywatch
