Pakistan Economy Watch (PEW)

Flawed economic model resulting in repeated crisis: PEW

Exports through subsidies and packages a wrong approach
Export boom is always followed by inflation, currency depreciation
Interest rate hike termed insufficient to contain slide of rupee

The Pakistan Economy Watch (PEW) on Tuesday said Pakistan’s economic model is flawed and full of contradictions but the policymakers prefer shortcuts over sustainable development.

The policy to boost exports through subsidies is wrong as boosting exports require consistent policies, improved industrial investment and a focus on new technologies, it said.

Whenever the government has tried to boost exports artificially, it has resulted in trade deficit, inflation, exchange rate erosion, increased value of dollar, and mini-budget, said Dr. Murtaza Mughal, President PEW.

He said that sometimes mini-budgets fail to deliver, leading the government to seek loans from the IMF and other sources.
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SBP intervention to stabilise the rupee remained futile: PEW

Policy rate hike, ban on luxury imports demanded
Afghan asett freeze triggered outflow of dollars

The Pakistan Economy Watch (PEW) on Saturday said the efforts of the State Bank of Pakistan (SBP) to stabilize the local currency has left much to be desired.

The central bank has pumped $1.23 billion dollars in the market to stabilize the rupee but to no avail, as the local currency has depreciated by Rs12 in the current fiscal, it said.

Government should immediately ban the import of luxury items while State Bank should hike policy rate to reduce demand to stabilize the rupee and reduce the speed of hike in the prices of essential items, said Dr. Murtaza Mughal, President PEW.
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Action demanded against officials delaying import of wheat, sugar

Mismanagement in TCP threatening food security in Pakistan
Increasing wheat demand in Afghanistan require immediate imports

The Pakistan Economy Watch (PEW) on Tuesday demanded strict action against elements involved in delaying the import of wheat and sugar.

Unnecessary delay in import of wheat and sugar has not only increased prices in the local market but will also inflict heavy losses on the national exchequer, it said.

Change in Afghanistan has also increased demand for wheat which will have an impact on prices in Pakistan therefore wheat should be imported without delay, said Chairman PRW Brigadier (retd) Muhammad Aslam Khan.
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