05. 11. 18
Businesses asked to invest more in internet security to avoid losses
The Pakistan Economy Watch (PEW) on Sunday said recent attacks of cybercriminals on the banks resulting in heavy losses have exposed weaknesses in the online banking system.
It has also brought the need for enhanced internet security in the banking and other sectors to the limelight, it said.
After the attacks, around ten banks have stopped international transactions through their credit and debit cards which will add to the problems on consumers, said Dr. Murtaza Mughal, President PEW.
He said that all the businesses should improve cybersecurity while financial institutions should invest more in this sector under the supervision of the central bank to avoid theft of data.
Murtaza Mughal said that cybercriminals have always remained a step ahead of government agencies.
A recent report says that the internet security related losses which were $500 billion dollars in 2014 have surpassed 600 billion dollars in 2018.
The losses are set to increase to one percent of the global GDP by 2021 due to lax laws, low conviction rate and easy money, he said.
The government should invest more in cybersecurity and relevant laws should be improved to discourage the crime which has the potential to disturb banking industry, he demanded.
Dr. Mughal said that cybercriminals know no boundaries, therefore, overcoming it is not possible without international cooperation.
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31. 10. 18
The operation has broken the back of influential, big fish
The Pakistan Economy Watch (PEW) on Tuesday said nationwide anti-encroachment has added to the credibility of the government.
The operation has broken the back of the qabza mafia as dozens of commercial buildings, filling stations, shops, marquees, restaurants, and other unauthorized structures have been demolished, it said.
The situation in many cities has improved, influential, big fish and encroachers have been demoralised, while government property worth tens of billions of rupees has been retrieved, said Chairman Brig. Muhammad Aslam Khan (Retd).
He said that government needs to intensify the operation and prefer clearing Islamabad of all the encroachments to make it a model city.
Commercial buildings have been built on the plots reserved for cinemas, swimming pools and clinics in the CDA’s master despite the fact that CDA bylaws disallow any commercial activity on plots kept for cinemas, swimming pools, and clinics, he added.
Brig. Muhammad Aslam Khan said that the government should bring to book the elements who usurped the right of entertainment of the people by greasing the palms of concerned officials.
At the occasion, Dr. Murtaza Mughal said that some people also purchased cheap plots in the industrial area and illegally converted them into plazas, educational institutions, hostels, offices, shops, showrooms, godowns and wedding halls.
Dozens of plazas were constructed in Golra which were shown as constructed in Sector E-11 to deprive masses of their hard earned income worth billions while no action was taken against them.
The calls of masses looted by builder mafia should not fall on deaf ears and operation should continue, he demanded.
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29. 10. 18
Beijing can help IMF relax loan conditions for Pakistan
Chinese industry should be relocated to Pakistan to avoid US sanctions
The Pakistan Economy Watch (PEW) on Sunday said the upcoming visit of Prime Minister Imran Khan can result in various deals which will help stabilize our troubled economy.
The US has started a cold war against China, it is pressurizing Pakistan, using India against China and Pakistan and damaging global economic order, it said.
In the given scenario, Pakistan and China need each other to confront threats which is only possible when Islamabad is backed by a stable economy, said Dr. Murtaza Mughal, President PEW.
The outcome of the visit of PM Khan could be new deals worth billions of dollars, a package to improve the balance of payments crisis while Beijing can also help IMF relax loan conditions for Pakistan, he said.
Dr. Murtaza Mughal said that Chinese companies are facing problems due to US sanctions, therefore, Pakistan can offer them help in relocation to Pakistan while investment in other sectors can be persuaded.
Chinese investment in the agricultural sector could be sought to develop this sector and improve the trade balance by exporting agricultural products to China.
Both the countries can tackle doubts over CPEC and decide to prioritize and expedite the projects under the matchless Chinese initiative, he said.
CPEC is a huge economic opportunity which has created 80,000 jobs in Pakistan and by the end of 2030, some 700,000 more jobs will be created.
The strategic partnership between Pakistan and China is not against any third country while the US-India relationship is clearly meant to harm Pakistan and China.
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22. 10. 18
The Pakistan Economy Watch (PEW) on Sunday said the United Business Group (UBG) is not prepared for the upcoming elections of FPCCI.
UBG leaders used to launch election campaign four months before the elections but it has not launched an effective campaign for the elections scheduled in December, it said.
Reasons behind the delay in the campaign is said to be the recent defeat of UBG in the elections of Karachi Chamber of Commerce and other disappointments, said Dr. Murtaza Mughal, President PEW.
He said that the patron of the group SM Muneer used to call former prime minister Nawaz Sharif his hero but the PM fired him from TDAP for dwindling exports which shocked many.
Murtaza Mughal said that SM Muneer also tried to become governor of Sindh in caretaker setup but failed while all the important leaders also failed to secure any slot in the interim government.
After the election of PTI into power, SM Muneer tried to get a position in the government but was politely denied and the group was also ignored in the recently formed Business Leaders Council, he added.
However, a central leader of the Businessmen Panel was given an important ministry in the caretaker setup in Punjab.
Murtaza Mughal said that all these developments have dented the morale of the leaders and supporters of the UBG which is reflecting in their attitude.
He said that the dejection in the UBG may help the Businessmen Panel in the forthcoming elections of the Apex Chamber and the business community may see a profound change.
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15. 10. 18
Govt will never compromise national interests for IMF loan
Masses asked to cooperate with the government
The Pakistan Economy Watch (PEW) on Sunday said Prime Minister Imran Khan will make Pakistan a respected and developed country.
Masses should reject the propaganda of elements rejected in the recent election and cooperate with the government, it said.
Masses should understand that countries cannot remain dependent on loans and changing the rotten system will take time, said Chairman of the PEW Brig. Muhammad Aslam Khan (Retd).
He added that people should not panic and remember the example of South Korea and other countries which overwhelmed their difficulties with the cooperation of the masses.
Muhammad Aslam Khan said that politicians, bureaucracy and have looted Pakistan for decades, therefore, masses and not ready to believe anything.
Now the situation has changed for good, but the government will have to take difficult decisions that would be painful for people but necessary under international commitments to get out of the current severe economic situation, he observed.
He lauded the stance of the government of not compromising on national security and the PTI government would not opt for an IMF programme if conditionalities are against the national interests.
Dr. Murtaza Mughal said that IMF programme was inevitable in the given circumstances when export competitiveness had been destroyed and debt profile aggravated over the past five years, he noted.
IMF programme would be a helping hand for the government to gradually sail through the tough economic circumstances.
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14. 10. 18
Stabilised economy will automatically balance prices
Masses should not panic, change takes time
The Pakistan Economy Watch (PEW) PML-N and PPP plundered country like East India Company while recent price hike was a compulsion due to destructive policies of former PM Nawaz Sharif.
Masses should understand that the country cannot be run on the basis of loans forever and a change is not possible overnight, it said.
Economic stability will automatically reduce prices of energy and necessities and stabilise the eroding exchange rate, said Chairman of the PEW Brig. Muhammad Aslam Khan (Retd).
Speaking at a function, he said that people should not panic and remember the example of South Korea which took a loan of 58 billion dollars from the IMF to avoid default.
Masses cooperated with the government and deposited tonnes of gold enabling government to repay debt four years ahead of schedule, he added.
Muhammad Aslam Khan said that in 1907 the same country faced a crisis when Japanese loans matched its GDP, men quit smoking while women sold their wedding dresses and jewellery.
The world wars destroyed many countries which are now highly developed nations, he said, adding that Venezuelan economy has contracted by 18 percent in 2018, prices have jumped by 1,370,000 percent while IMF forecast says that inflation is to touch ten million percent by 2019.
Presently a cup of tea in that country costs as much as a normal home was priced a few years ago but the situation in Pakistan is far better than that.
He noted that politicians, bureaucracy and other influential have looted Pakistan to an extent that masses and not ready to believe anything but now situation has changed and the government will not need another bailout in future.
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09. 10. 18
Hike in power, gas prices to hit masses, economy
Circular debt burden should not be put on consumers
The Pakistan Economy Watch (PEW) on Tuesday said Prime Minister Imran Khan’s decision to seek IMF help to overcome balance of payments crisis will stabilise the market facing turmoil due to uncertainty.
The continued indecision regarding a bailout package from IMF has damaged stock market, eroded rupee and raised concerns about the future of the economy but the decision of the premier will calm the nervous investors, it said.
The forex reserves are sliding, the deficit is increasing, payments for imports and debt servicing has become difficult and there is no money for developmental schemes, therefore, IMF loan has become last option, said PEW Chairman Brig. Muhammad Aslam Khan (Retd).
He said that prices of essentials are skyrocketing, circular debt has reached the mark of trillions of rupees while market capitalisation in the stock exchange has suffered by half a trillion rupees in one month.
Muhammad Aslam Khan said that investors suffered a loss of 270 billion rupees in the recent stock market crash due to uncertainty but now the situation will improve.
He said that government should try its best to deal with the IMF’s demand to further increase the price of gas and electricity, weakening of rupee and tighten monetary policy as it will hurt masses and the economy.
Masses are not ready to swallow more bitter pills, therefore, the power sector circular debt should not be recovered from the honest consumers who have not contributed to it, he demanded.
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30. 09. 18
Aiding tax dodgers to boost flow of illicit money in real estate market
The decision to embolden tax cheats, not to go down well with FATF
The Pakistan Economy Watch (PEW) on Saturday said relaxation given to non-filers for purchasing property and cars has encouraged tax evaders and corrupt.
The decision will hit the efforts to broaden tax net, stop the influx of black money into real estate market, stabilise the price of plots and homes, and bring an end to the culture of premium in the auto industry, it said.
The move will not go down with the Financial Action Task Force (FATF) authorities that are due soon in the country to review the progress against money laundering and terror financing, said Dr. Murtaza Mughal, President PEW.
Talking to President of Rawalpindi Islamabad Tax Bar Association (RITBA) Syed Tauqeer Bukhari, he said that the real estate sector will again emerge as a favourite area for the corrupt who find it convenient to hide their ill-gotten money in this business.
Murtaza Mughal said that the claim of the government to facilitate non-filer to buy properties will encourage expatriates to invest in Pakistan is baseless as they already enjoy exemption under the Income Tax Ordinance.
He noted that the decision to help tax cheats to buy properties and costly vehicles indicate the growing influence of real estate mafia and auto industry milking masses since decades.
At the occasion, RITBA President Syed Tauqeer Bukhari said that a delegation of FATF is due shortly to review the situation but no purposeful action has been taken against money launderers and those involved in terror financing.
He said that recently FIA arrested some currency dealers in Peshawar to please FATF but relevant clauses were not applied and they were charged under Maintenance of Public Order which was overturned by the High Court due to the absence of any evidence.
The action of federal agency speaks a lot about the capacity and will of the officials which will never satisfy FATF and it will not add to the reputation of the country, Bukhari said.
He noted that the government’s plan to modify the relevant income tax law will not help improve the situation or help get desired results.
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24. 09. 18
The Pakistan Economy Watch (PEW) Chairman Brig. Muhammad Aslam Khan (Retd) on Sunday said the Eighteenth Amendment of the constitution has added to confusion in the taxation system.
It has divided taxation system in an unnatural way hampering documentation of the economy, helping the undocumented economy and increasing the cost of doing business for the business community, it said.
The amendment has resulted in a unique Value Added Tax (VAT) in Pakistan in which goods are taxed by federal authorities while services are taxed by the provincial authorities resulting in confusion, said PEW Chairman Brig. Muhammad Aslam Khan (Retd).
Federal and provincial revenue authorities have their own conflicting definitions for goods and services which results in disputes, litigation and loss of revenue, he added.
He said that the VAT is collected by a single authority in all the countries except for Pakistan where the tax on services gathered by provinces some of whom are facing lack of relevant laws, human resources, paraphernalia, and ability.
The capacity constraints resulted in low tax collection which has a negative impact on the overall collection, said Brig. Muhammad Aslam.
At the occasion, Dr. Murtaza Mughal said that the orchestrators of the 18th Amendment were not concerned about the welfare of the masses.
They were concerned about politics otherwise corrective measures would have been taken after the realization of the devastating consequences of the move on dozens of the sectors.
He noted that a country can never progress without a just and sound VAT, therefore, the incumbent government must take corrective measures.
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23. 09. 18
Trade with neighbours insignificant except China
Kashmir issue can be resolved through trade
The Pakistan Economy Watch (PEW) on Saturday asked the government to end country’s regional economic isolation to ensure rapid national development.
We have insignificant economic relations with India, Iran and Afghanistan while the only country with whom our trade is significant is China, it said.
Trade with Iran and Afghanistan is hostage to negative US attitude while trade with India can be increased to ten billion dollars without compromising on core issues, said Dr. Murtaza Mughal, President of the PEW.
Murtaza Mughal said that all the efforts to resolve Kashmir dispute through wars and jihad have failed and the armed conflict has no longer remained an option as both the neighbours have acquired nuclear capability.
The time has come to resolve the Kashmir issue and other disputes through trade, he said, adding that India can be included in the CPEC and gas pipeline projects which will help Pakistan generate a handsome amount of foreign exchange and normalise relations.
Trade with India will import cut import bill and provide relief to masses in shape of affordable goods and services, he said.
Both the countries have a lot in common and they can consider not to compete in the international market but to cooperate to get a larger share.
Karachi port continues to block trade due to congestion and other problems which must be tackled on a priority basis, he demanded.
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22. 07. 18
A bailout package and a new strategic trade policy is needed
Plan to boost exports aggressively can make country self-sustaining
The Pakistan Economy Watch (PEW) on Saturday said the country needs a real plan to avert the looming economic disaster.
At this critical juncture the country needs is a bailout package to remain afloat followed by a new strategic trade policy designed after consultation with all the stakeholders which can fix economic problems through exports, it said.
Islamabad needs to consider a more strategic trade policy resulting in aggressive exports in to make economy self-reliant on a sustainable basis, said Dr. Murtaza Mughal, President PEW.
All the political parties seem to be focused on petty issues and unconcerned about the economic mess as the current account deficit for the FY2018 has touched $18 billion which was $4.87 billion two years ago, he added.
Dr Murtaza Mughal said that during the last two years policymakers failed to check imports which jumped to 66.2 billion dollars in FY2018 to reverse the economic gains and erode forex reserves held by State Bank to below nine billion dollars.
Rapid devaluation and other measures increased exports by $2.7 billion which was not enough as exchange rate erosion took a toll on masses and added trillions of rupees to the debt burden, he observed.
The increase in exports failed to keep pace with the increased imports and the economy continued to consume $1.5 billion per month throughout the year.
Imposition of regulatory duty on many importable items and half-hearted measures of the State Bank has only resulted in high inflation and uncertainty.
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16. 07. 18
Hike in interest rate to result in economic contraction
Policymakers favoring stabilisation over growth
Govt failed to boost exports, control imports
The Pakistan Economy Watch (PEW) on Sunday said the monetary policy of the State Bank has exposed the tall claims of rapid economic development by the former government and confirmed that economy is sailing in troubled waters.
Hike in the discount rate also indicates that now policymakers are preferring stabilisation over the economic growth which will initiate the process of contraction of the troubled economy, it said.
Economic contraction will result in unemployment and cuts in the developmental budget which will hit the social sector, said Dr. Murtaza Mughal, President PEW.
He said that the deficit has reached 6.8 percent surpassing the target of 5.5 percent while the current account deficit from July to May has reached to 16 billion dollars which was 11.1 billion dollars during last year.
The government is failing to control the situation despite repeated erosion in the exchange rate, it has failed to boost exports substantially or reduce unnecessary imports which have taken a toll on the forex reserves, he said.
Dr. Murtaza Mughal said that a little improvement in exports and remittances aren’t enough and the government will be compelled to revise petroleum and electricity prices but it will not save it from knocking the door of IMF as billions of dollars are needed to keep the country from bankruptcy.
He said that water scarcity has been damaging the agricultural sector on which majority of the population depends while manufacturing is to take a hit from increased interest rates.
The caretaker government has started the groundwork for the IMF loan but it is leaving the final decision to the elected government which is very encouraging, he said.
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15. 07. 18
Dams to help balance the energy mix
The Pakistan Economy Watch (PEW) on Saturday said Pakistan should reduce its dependence on India and Afghanistan for water by constructing dams and water reservoirs.
Reducing dependence on enemy nations is essential for national security as water is being used as an effective weapon against Pakistan, it said.
Dams will not only ensure water security but also reduce dependence on fossil fuel balancing the energy mix which is heavily tilted towards oil, said Dr. Murtaza Mughal, President PEW.
Th cost of Diamer-Basha dam was estimated to be Rs1450 billion in 2008 while the allocation for the dam for the year 2018-19 stands at Rs23.50 billion which is a joke, he added.
Dr. Murtaza Mughal said that the cost of the construction of the dam has jumped by billions due to delays and exchange rate erosion, Rs101 billion is required for purchasing land and resettlement of people while reservoir will need an investment of Rs 650 billion.
In this scenario allocating a meager sum for the dam speaks of neglect of policymakers which is criminal, he said.
Dr. Mughal said that nation is contributing for construction of two dams which is laudable but the cost cannot be covered through charity. It requires the resources which can only be met through loans worth billions of dollars.
He said that dams will also reduce dependence on furnace oil saving billions of dollars in energy imports. It will reduce the cost of power generation triggering economic activity, creating jobs, boosting exports and revenue.
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10. 07. 18
Three women chambers also declared illegal
Business community uneasy over the decision
The Pakistan Economy Watch (PEW) on Monday said that Directorate General Trade Organisations (DGTO) has cancelled licences of twenty-six trade associations including nine chambers of commerce sparking widespread criticism.
Licences of three chambers of commerce representing women entrepreneurs have also been cancelled igniting criticism among concerned circles, it said.
A group of business leaders called on Dr. Murtaza Mughal, President of PEW and informed him that the office of DGTO is discouraging the business community. They are being insulted for small technical faults in the papers which is adding to the uncertainty.
The business community alleged that the DGTO office is full of remnants of a former government which are defaming the present government through such negative tactics.
The trade associations that have been declared illegal include Rawalpindi Women Chamber, Attock Women Chamber, Nowshera Women Chamber, Charcadda Chamber of Commerce and Industry, Benazirabad Chamber, Hunza Chamber, Qila Saifullah Chamber, Moosa Khail Chamber, and Nigar Chamber of Commerce and Industry, they informed.
They said that the other trade association that were declared illegal include Pakistan Computer Association, Chemists and Druggists Association, Travel Agents Association, All Pakistan Oil Mills Association, Small Hajj Organisers, Tractor Dealers, Almunium Manufacturers, Scrap Importers, Copper Importers, Plastic Scrap Importers, Association of Transporters, Glass Manufacturers, Ghee Exporters, Custom Agents, Heater Importers, Health Care and Importers of Gen Stones.
At the occasion, Dr Mughal said that the country is passing through difficult times and confidence of the business community is imperative to tackle challenges, therefore, they should be facilitated.
The timing of the move will not benefit the government of the business community in any way, he said.
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06. 07. 18
Water conservation can help tackle Indian conspiracies
Failure in the conservation of water will make Pakistan a failed state
The Pakistan Economy Watch (PEW) on Thursday said all the governments during the last 45 years are responsible for the water crisis in Pakistan.
However, the burden of responsibility is more on the shoulders of two former government that conveniently ignored the crisis in the making and continued to pursue agenda of personal welfare, it said.
Only India should not be blamed as we are also responsible for this dire situation, said Dr. Murtaza Mughal, President PEW.
He said that our farmers are on the top of the list of the cultivators known for wasting water as they use two to three times more water than India to grow anything.
Pakistani farmers continue to waste a lot of water which can be saved as it will not reduce but increase agricultural production to make Indian conspiracies less effective.
Developed nations use few hundred litres of water to get one kilogram of sugar, developing nations use approximately 1500 litres of water for the same while Pakistan waste 7000 litres for it, he informed.
Pakistan is also wasting a lot of water for other crops like wheat, rice, maize, fruits and vegetables etc. while the production of meat, cheese and butter need more water than any crop while chocolate top the list which need 17196 litres of water for one kilogram.
Half of the global production of food which is two billion tonnes is wasted in which Pakistan is not behind other nations.
The world is using 3.8 trillion cubic metres of water per annum of which 70 percent is used by the agricultural sector and the demand is set to grow by 300 percent by 2050.
Failure in the conservation of water will make Pakistan a failed state, he warned.
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04. 07. 18
US wants to pressurise Pakistan into submission
The Pakistan Economy Watch (PEW) on Tuesday said the decision by the Financial Action Task Force (FATF) to put Pakistan in the ‘grey list’ is a move taken on the behest of US.
It has little to do with terror financing while everything to do with Pakistan’s Afghan policy which is seen as unfavorable in Washington, it said.
The US wants to force Pakistan into submission by shattering its fragile economy through such tactics, said Dr. Murtaza Mughal, President of PEW.
He said that we should counter US conspiracies as changing important regional policies to please Washington will be a suicide.
Murtaza Mughal said that the aims of FATF are political otherwise Afghanistan, India, Sudan and Nigeria would be been included in the list while the countries known for hiding dirty money including the UK would not have been spared.
The US is notorious for hiding dirty money, therefore, the politicians and bureaucrats of Pakistan and dozens of other countries but property worth billions there.
The FATF is a tool to hit Pakistan’s economy, CPEC, banking sector, exports, and investors confidence as it will increase the cost of doing business, he observed.
He said that the move can hurt the stock market and have an impact on the creditworthiness of the country making borrowing difficult.
Pakistan was included in the grey list in 2012 and it took us three years to come out of it but this time the US was so eager their all the friendly nations decided not to support Pakistan in the voting.
He said allowing terrorist outfits to operate by changing names and participate in the elections has added to the negative impression.
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03. 07. 18
Decision has improved Govt rating, confidence of businessmen
Move exhibits impartiality of the Govt, economic weakness
The Pakistan Economy Watch (PEW) on Monday lauded the decision of the caretaker government to extend the deadline of the tax amnesty scheme as it will attract much-needed funds.
The move has improved the confidence of the business community and polished the image of the present government, it said.
Extension in the scheme launched by the former government proves that the current administration is unbiased and impartial while it also exposes the feeble condition of the exchequer, said Dr. Murtaza Mughal, President PEW.
The former government continued to claim an economic turnaround but left exchequer empty, he added.
Dr. Murtaza Mughal said that former rulers borrowed over 45 billion dollars while a sizable amount was wasted due to mismanagement and nepotism.
The former government failed to manage economy otherwise the country would not have been on the verge of bankruptcy, he said, adding that SBP is short of forex reserves enough to manage two months of imports.
We are still spending one billion dollars a month while the gap between income and expenses has reached an alarming level of 25 billion dollars necessitating an IMF package.
He said that dollar was worth Rs60 during the dictatorship but the two democracies have pushed it to Rs125 while the fall continues.
Erosion in the exchange rate has pushed the necessities out of the reach of common man, he said.
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25. 06. 18
Policymakers asked to notice the scarcity of water
Water scarcity becomes one of the biggest issues of Pakistan
The Pakistan Economy Watch (PEW) on Sunday said our fertile lands are turning to the desert threatening survival of the populous country.
The water scarcity is taking a toll on agriculture, industry and the masses but policymakers have not realised the gravity of the situation, it said.
Everything is under threat as the country is becoming a desert with a rapid pace which will destroy all the developmental initiatives, said Dr. Murtaza Mughal, President PEW.
He said that migration, climate change, failure to manage water and Indian conspiracies have made Pakistan a water deficient country.
Once Pakistan was a water happy country but now per capita availability of water is well below 1000cubic meter but satisfactory steps were not taken to combat the threat.
The country has been facing a magnitude of problems but water scarcity has become one of the biggest issues which need immediate attention, he said.
Murtaza Mughal said that nation should think ahead of Kalabagh dam and press the government to construct small dams on a war footing to save masses, agriculture and industrial sector.
He said that the shortage of water is causing an adverse effect on the economy of the country, it has badly affected the agricultural sector.
The direct impact of water crisis has reduced crops, forest productivity and water level and it has increased livestock, wildlife and human being mortality rate.
The need of the hour is to focus on water development and water management to improve the situation of water scarcity.
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21. 06. 18
Project to boost production, revenue, and international image
The Pakistan Economy Watch (PEW) on Wednesday said CPEC will make the bumpy road to country’s self-reliance smooth.
The journey will begin from self-reliance in the field of energy which will soon include many other sectors including local and regional trade, it said.
The project will also boost Pakistan’s production, revenue, defense capability, internal security, political strength, international image and sustainable development, said Dr. Murtaza Mughal, President PEW.
He said that the initiative will put Pakistan on the path of progress which is not acceptable to some countries including USA and India as it will damage their dominant position in the region.
China has remained a very close ally of Pakistan since decades and now economic interests have brought both the nations together which will help Pakistan resolve many problems, he added.
Poverty is rising in Pakistan which has a positive relation with environmental degradation and climate change. The poor try to consume whatever is available for their survival, so natural resources become the first victim but the CPEC has the potential to change the situation.
The creation of new economic centers across the country under CPEC will discourage migration of rural people to the cities ensuring overall development and help resolve the issue of poverty and climate change.
Murtaza Mughal said that CPEC is a ray of hope for the people of Pakistan but some elements continue to criticise CPEC on different baseless grounds which is a result of lack of information.
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07. 06. 18
Gravity dams are the better alternative to mega dams
Pakistan can become an electricity exporting country
The Pakistan Economy Watch (PEW) on Wednesday said Kalabagh dam (KBD) poses a serious threat to the national integrity as it is against the wishes of the people of three provinces, therefore, it should be buried.
There are many better alternatives available which should be considered by the policymakers, it said.
Dr. Murtaza Mughal, President PEW said that China has offered to construct forty gravity dams on the banks of River Indus costing double than KBD producing fifty thousand megawatts or fourteen times greater than the controversial KBD.
Gravity dams will give an unprecedented boost to GDP and exports while Pakistan will become an electricity exporting country, he added.
Murtaza Mughal said that global trend has shifted to environmentally-friendly small dams which must be followed and Pakistan can also copy Japanese model of run-of-the-river dams.
He said that opponents of KBD say that it is designed to steal water and it will play havoc with the agriculture of Khyber Pakhtunkhwa and Sindh.
He said that there is no opposition to the Dasu, Diamer-Bhasha, and Munda dams which will have more storage capacity and will generate 9520 megawatts as compare to 3600 megawatts from KBD.
These three dams could be upraised which is not possible in case of KBD and they are immune to silting while KBD would require desilting after 15 years. These dams would increase the life of Turbela by fifty years while KBD would not benefit Turbela in any way.
The former government failed to properly fund the said dams to waste trillions of rupees for symbolic projects like Orange train and metro which was criminal, he said.
Murtaza Mughal noted that three provinces are against KBD and provincial assemblies have also passed resolutions against it, therefore, insistence on this project will not benefit the federation.
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04. 06. 18
Govt should take note of the plight of meat exporters
The Pakistan Economy Watch (PEW) on Sunday said meat exports from Pakistan are going down for some years due to multiple reasons which should be noticed.
Meat exports grew by 27 percent from 2003 to 2015 after which it fell because of many reasons including non-payment by importers leaving many Pakistani exporters bankrupt, it said.
Due to failed financial obligations, especially by the importers of Gulf states, Pakistani exports reduced as it exported meat worth 113.9 million dollars in the first seven months which was seven percent less than meat exports of the earlier year, said Dr. Murtaza Mughal, President PEW.
He said that meat exporters have tried different forums of businessmen, sought the help of the concerned government officials and tried Pakistani embassies in the Gulf countries to get their money but to no avail which has discouraged them.
Dr. Murtaza Mughal said that Indian exporters are also selling their meat as Pakistani meat eating up our share but the concerned authorities have turned a blind eye to it.
He noted that presence of black sheep is also an issue hampering exports as some of the exporters violate the agreements and mix substandard meat in the consignments to maximise their profit which brings a bad name to the country.
The government should take note of the situation otherwise exporters from Australia, Newzeland and India will wipe out Pakistanis from the international meat market, he warned.
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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.
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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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.
15. 04. 18
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Failure of the scheme will be a success for the US
The opposition should stop opposing the scheme
The Pakistan Economy Watch (PEW) on Sunday said the tax amnesty scheme has not been designed to benefit tax doggers but orchestrated to save the country from another loan by IMF on harsh conditions.
The failure of this scheme will be a success for the Trump’s administration which has already waged a war against Pakistan and eagerly awaiting a chance to further damage our country, it said.
A formal request by Pakistan for an IMF loan will be an opportunity for the US which has been humiliating and penalizing Pakistan for its failed policies, said Murtaza Mughal, President of PEW.
He said that country is passing through a critical phase; exchange rate and economy are not in very good shape, twin deficits have emerged as a big threat, forex reserves have been eroded raising concerns among stakeholders.
Murtaza Mughal said that the incumbent government has borrowed Rs6 billion per day from the domestic market which is a record and there is no way the loans can be serviced.
In this situation, the government had no option but to seek IMF’s loan or try to bring back funds hidden in foreign countries.
The amnesty scheme will not damage the economy while IMF’s loan will not be without acceptance of harsh economic and political conditions, he said, adding that it may also hurt CPEC.
He noted that the GDP growth rate continues to improve since 2012-13 while it will hit the mark of 5.8 percent in the current fiscal and over six percent in the next fiscal which is not acceptable to enemies of Pakistan.
Entering into IMF programme will be followed by policies which will result in the economic suicide, he warned.
13. 04. 18
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ommerce officials harassing business community
Commerce ministry should be cleared of black sheep
The Pakistan Economy Watch (PEW) on Thursday said economic indicators are improving despite record surge in the trade deficit.
The government is also trying best to restore the confidence of the business community so that they transfer funds to Pakistan which are badly needed, it said.
Pakistan can become self-reliant only if the confidence of the business community is restored but some elements are trying to harass the businessmen, said Murtaza Mughal, President of PEW.
This he said while talking to a delegation of the business community representing various trade associations and chambers of commerce.
He said that bureaucracy should be controlled lest the business community is terrified wasting the efforts of the top government functionaries.
At the occasion, the leaders of the business community said that some officials of the commerce minister are harassing the business community. They are called from the far-flung areas of the country and humiliated.
“Our respected leaders are being dealt like criminals on one pretext or other while the commerce bureaucrats are acting like the officials of FIA,” they said.
The said that we don’t deserve to be harassed by officials under the grab of minor deviations from the rules and regulations at this critical juncture.
The asked the commerce minister to take note of the situation and cleanse the ministry from black sheep defaming the government so that business community can take a sigh of relief.
12. 04. 18
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Govt kept national interest supreme over all other things
The Pakistan Economy Watch (PEW) on Wednesday lauded the decision of the Prime Minister Shahid Khaqan Abbasi to suspend the FTA negotiations with China.
The decision is praiseworthy as the national interests were kept supreme in it on any other consideration, it said.
The local business community has also informed the government well before the talks on the second round of FTA that further relaxations to the friendly country will damage the local industry beyond repair.
The Chinese side had refused to give any relaxation to Pakistan which was not expected by our officials, he said, adding that after suspension of talks the Chinese side has shown some flexibility which is good.
Murtaza Mughal said that Pakistan and China signed an FTA on Nov 24, 2006, which boosted Pakistani exports to China from 575 million dollars to 2.6 billion dollars while it increased Chinese exports to Pakistan $3.5 billion to $14 billion resulting in a large deficit.
The losses in trade with China continue to increase by the passage of every year which Pakistani exports continue to slide as China has given more relaxations to other countries.
India and Vietnam have replaced Pakistani products in the Chinese market because Pakistan’s interests were not preferred by the Chinese authorities.
He said under-invoicing by the Chinese exporters has also become a threat to the Pakistan economy which should be tackled.
08. 04. 18
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Poor performance of agri sector to drag down the GDP
The Pakistan Economy Watch (PEW) on Saturday said ignoring agricultural sector is
Keeping millions poor and hitting growth rate.
The agriculture sector is considered the backbone of the economy but it is not getting due attention since decades despite the fact that majority of the population depends on this sector, it said.
The bad cotton crop and reduction in the area under cultivation of wheat will reduce the growth rate while the country will have to spend billions to bridge the shortfall of 2.5 million bales, said Murtaza Mughal, President of PEW.
The farmers are ignoring latest methods and continue to increase the volume of inputs like fertilizer to boost production which is increasing the cost of doing business, he added.
Murtaza Mughal said that it is next to impossible to ensure national development while keeping agricultural development on the backburner, adding that the poor performance of agriculture sector to drag down the GDP.
He said that agriculture is no more the largest sector of the economy but it continues to provide jobs to the majority of the laborers therefore it merits attention.
Agriculture growth in the last eight years has remained at the average of 2.1 percent while it has dipped to 1.6 percent which proves apathy of the policymakers, he added.
He said that reduced production is contributing to poverty in the rural areas and widening the gulf between rich and poor which can be bridged through the intervention of the authorities.
Pakistan is a notable country in milk production; the number of cattle head is increasing but the productivity of milk, beef and mutton is stagnant since long.
05. 04. 18
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Imports and deficit putting pressure on the rupee
The Pakistan Economy Watch (PEW) on Wednesday said the continued decline in exchange rate has shattered the confidence of masses in the rupee which has triggered dollarization of the economy.
Dollarisation of the economy is against the national interests as it damages monetary sovereignty, hurt the economy and leave central bank almost useless, it said.
The government and the central bank should take concrete steps to de-dollarize the economy before it leaves rupee weightless, said Murtaza Mughal, President of PEW.
He said that dollar is sold at Rs117 in the open market, forex reserves with the central bank are below the level of twelve billion dollars while the trade deficit for the first eight months is 4.27 billion dollars over and above as compared to the last fiscal.
Frequent devaluation has pushed masses to convert their savings and profit into the dollar that cannot be countered through encouraging statements of secret meetings with the currency dealers.
The continued fall in the value of rupee and lack of reforms as well as inaction can result in widespread rejection of the rupee, in the long run, he warned.
Murtaza Mughal said that one of the reasons for dollarisation is the negative rate of return given to the depositors by the commercial banks which push them to prefer dollars to reduce the risk of inflation and devaluation.
The government can’t stop dollarisation by issuing orders, it can only be controlled by introducing long-awaited reforms and using positive economic measures like better regulations, enabling and transparent policies etc.
30. 03. 18
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Loadshedding started with the onset of summer
New power projects added to the circular debt, massive foreign loans
The Pakistan Economy Watch (PEW) on Thursday said the onset of summer has resulted in massive load-shedding across the country exposing serious flaws in the government’s power policy.
The tall claims of the PML-N leaders regarding eliminating power crisis failed to materialize which can have an impact on the results of upcoming elections, it said.
PML-N leaders knew that load-shedding was an important factor in the defeat of the PPP in the previous general elections, therefore, they made elimination of energy crisis a cornerstone of their strategy, said Dr. Murtaza Mughal, President of PEW.
However, he said, it seems difficult that the promise would be delivered as three RLNG based power projects in Punjab with a combined capacity of 3600 megawatts failed to start commercial production despite repeated extensions in the deadline resulting in massive losses.
Similarly, Nelum-Jhelum and Tarbela extension projects with a capacity of generating over 1400 megawatt also failed to provide electricity adding to the costs.
The failure has hit LNG imports which have resulted in fines and damages and the masses will pay the bill for the incompetence of the authorities.
Murtaza Mughal said that government tried to launch new power projects ignoring reforms and improvement in transmission and distribution system which has only added billions to the circular debt and loans.
It appears that the next government will have to bear the load of the mistakes of the incumbent government which is not ready to accept its failure and take action against those who are responsible.
27. 03. 18
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Imports to nullify the impact of little improvement in exports
The Pakistan Economy Watch (PEW) on Monday said devaluation will increase the burden on poor, increased foreign debt and liabilities while boosting the profit of some of the influential sectors.
Erosion in the exchange rate to the tune of 9.4 percent in just three months will hit man on the street while and damage education, health, and security environment, it said.
The devalued rupee is to take a toll on the economy while it is to improve the profitability of many influential sectors including textile, oil and gas and IPPs, said Dr. Murtaza Mughal, President of PEW.
He said that increased price of locally manufactured and imported goods will trigger smuggling and tax evasion helping the black economy to expand.
Repeated devaluation is in conflict with the claims of the government that economy has been revived through tireless efforts, he added.
Dr. Murtaza Mughal said that claim that eroded rupee will boost exports needs some verification as imports and more than double of the exports which can nullify the impact of the move.
The government should have studied the impact of inflation in advance and tried to contain it, he demanded.
He said that if the central bank hiked interest rates to contain inflation it will deal a severe blow to the shattered economy.
Devaluation can provide oxygen to the dying economy but it cannot revive it, he said, adding that key to the economic revival lies in the meaningful reforms which is not on the agenda of authorities.
25. 03. 18
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Sugar mills mafia exploiting poor planters
Sugarcane support price mechanism malfunctioning
The Pakistan Economy Watch (PEW) on Saturday said powerful sugar mills mafia continue to exploit the sugarcane growers which must be noticed.
Increased production of sugarcane has failed to improve the quality of life of millions of people depending on the sugarcane crop as they get Rs100 to Rs120 per maund against the support price of Rs180 per maund, it said.
Growers are not getting the notified price for their produce while they also face delayed payments every year, said Dr. Murtaza Mughal, President of PEW.
He said that federal and provincial governments have frequently been accused to side with the millers are provide them subsidies to the tune of tens of billions of rupees which put the strain on the exchequer.
Murtaza Mughal said that uncertainty continues to hurt growers and millions of those dependent on them while authorities have failed to chalk out any plan to save them from abuse.
He said that support price mechanism should be altered, growers should be given incentives, while millers should be directed to pay half of the price while unloading the sugarcane.
The remaining half of the price should be cleared within few months while the growers should be allowed to use encash receipts issued from sugar mills at designated banks.
Owners of the sugar mills should not be allowed to delay crushing season or employ delaying tactics to increase profit on the cost of poor otherwise growers will lose interest in this important crop which will be against the national interests, he warned.
02. 01. 18
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The Pakistan Economy Watch (PEW) on Monday said Pakistan’s leather sector can play its role in the national growth if it is patronised.
The country has abundant raw leather which can help it become a leading player in the one trillion dollars global trade of leather and leather goods, it said.
Pakistan will have to soften laws, change the attitude and stop discouraging this sector so that it can thrive, said Dr. Murtaza Mughal, President PEW.
He said that local leather industry is on the decline since long while exports have dwindled after getting GSP Plus status which is amazing.
Dr. Murtaza Mughal said that according to some estimates Pakistan share in the global leather trade is declining to benefit the competitors.
He said that the current situation is a result of the energy crisis, increasing cost of doing business, tax issues, lack of skilled manpower, weak marketing strategies, an absence of upgradation and apathy towards latest international trends.
Not a single institution has ever initiated serious efforts to promote leather sector providing jobs to over four hundred thousand people which has resulted in low-value addition.
Pakistani leather is best in the world outside Italy but regional countries like India and Bangladesh are grabbing its share because of active support of their governments.
Potential of the leather sector can be doubled in few years regaining the title of second largest export earner after textiles.
18. 12. 17
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Disputes over KBD must be settled
The Pakistan Economy Watch (PEW) on Sunday said the country is facing water terrorism from India as part of the plan to destabilise Pakistan.
The scarcity of water in rivers has pushed people to utilise groundwater which is depleting at a fast pace, it said.
The politicians should immediately settle the disputes on Kalabagh dam and other mega projects without which future of the country seems bleak, said Dr. Murtaza Mughal, President PEW.
He said that demand and supply gap for water has reached alarming levels which will make Pakistan if immediate steps were not taken therefore politicians should settle their dispute in the larger national interest, he added.
Dr. Murtaza Mughal said that the government should declare water as the most important issue of national security as the climate change, decreasing glaciers and forests and well as water aggression has emerged as grave threats.
He said that different areas have been witnessing a reduction in the water table from four to 12 inches per annum while some areas have witnessed the reduction of three to four feet annually which has increased the cost of pumping water through tube wells.
He said that scarcity of water is to hurt water-intensive crops like rice and sugar cane in the beginning and entire agricultural chain subsequently which will create problems like unemployment, food security and closure of our leading industries.
Pakistan’s population would be 250 million by 2025, demand for water would be at 338 billion cubic meters while availability would be 236 BCM creating many challenges.
The incumbent government is too much focused on court cases, foreign loans, next elections and new powerhouses while it should spare some time to tackle the issue of water scarcity, he demanded.
11. 12. 17
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Pace of reforms in power sector is slower than needed
IPPs facing liquidity crunch due to non-payment of bills
The Pakistan Economy Watch (PEW) on Sunday lauded the government for continued improvement in the power generation which is necessary for socio-economic development.
However, it said that pace of reforms is slower than expected which must be considered by the policymakers in the national interest.
Transmission and distribution losses and theft of electricity should be contained which the circular debt should not be allowed to resurface, said Dr. Murtaza Mughal, President PEW.
He said that twenty independent power producers are facing problems in continuing operations as their overdue amount has jumped to Rs205 billion which has compromised their ability to operate at full capacity.
These IPPs have stopped payments to PSO and others which is adding to the problem which must be noticed, he added.
Dr. Murtaza Mughal said that pace of reforms in the power sector should not be allowed to threaten the economic stability of the country.
Power sector reforms are directly linked to investors’ confidence and investment in the country which must be realised on the policy level, he said.
He observed that the masses and the economy continue to get punished for the weakness of the power sector which must get the immediate attention of the authorities.
The government has repeatedly assured the IMF to hike power tariff, keep surcharge intact, reduce losses and 100 percent collection but steps in this direction are yet awaited.
04. 12. 17
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Sustainable development requires meaningful reforms
Reforms should not be ignored on political considerations
The Pakistan Economy Watch (PEW) on Sunday said recent bond auction worth 2.5 billion dollars will provide temporary relief to the struggling government.
Sustainable development requires a difficult path of meaningful reforms which are being ignored due to political considerations, it said.
The PM Abbasi’s government continue to rely on loans to keep the country afloat like his predecessor Nawaz Sharif who acquired 35 billion dollars of loans to return previous loans, finance some projects, keep forex reserves in shape and gove impression of economic stability, said Dr. Murtaza Mughal, President PEW.
He said that the Nawaz government acquired 17 billion dollars of loans to repay loans which is a record while it got loans over 10 billion dollars in one year which is also a record.
Dr. Murtaza Mughal said that burden of loans increased by 30 percent during the era of Nawaz Sharif while the assets of politicians also increased in which the assets of former finance minister Ishar Dar increased 91 times, another record.
Former finance minister played a very important role in pushing the country into the debt trap while the current government is also following the same path by ignoring reforms and getting loans which will not resolve the problems.
The total loans have increased by 67.2 percent of the total national output which will have a very negative impact, he said, adding that government should not devalue the currency to please some exporters.
22. 11. 17
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The Pakistan Economy Watch (PEW) has demanded stern action against sugar mills mafia which is blackmailing the Government, hurting consumers and crushing farmers.
Sugar mills have stopped the supply of the commodity in Karachi and some other places to force the government to increase the export subsidy to make extra money, it said.
The prices of sugar have artificially been hiked benefiting the mafia controlling the supply of the product in the country on the cost of masses, said Dr. Murtaza Mughal, President PEW.
He said that why politicians and other influential are allowed to set up sugar mills if the national production is already surplus and costly enough to be exported.
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20. 11. 17
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Supporting dairy sector will help millions
The Pakistan Economy Watch (PEW) on Sunday said the dairy sector has great potential which can be exploited with the support of the government.
With milk production of 56 crore tonnes, Pakistan is the fifth largest producer of milk in the world while it is among top three producers in the Asia-Pacific region, it said.
Milk production can be increased from seven to eight times with little efforts which will boost exports and reduce its price providing relief to masses, said Dr. Murtaza Mughal, President PEW.
Production of milk per animal is seven to eight times lower than the developed nation which can be improved by using modern methods, he added.
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18. 11. 17
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The Pakistan Economy Watch (PEW) on Friday said energy situation has improved but its scarcity is still a threat to the economy.
The government is too much focused on new energy projects while it should also promote efficient use of electricity, it said.
Losses due to load-shedding is still eating up a sizable share of the GDP as average power shortfall remains 4000 megawatt while average gas shortfall is at 2000 cubic feet translating into losses of Rs 15 billion per annum, said Dr. Murtaza Mughal, President PEW.
Weaknesses in the transmission and distribution system have resulted in the losses of Rs 250 billion within last seven years as domestic demand continue to increase by 10 percent annually.
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01. 11. 17
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The Pakistan Economy Watch (PEW) on Tuesday said the Economic Corridor and the LNG project are great achievements of the government which will transform the economy.
Chinese investment in Pakistan can surpass one trillion dollars if government and masses ensure smooth flow of things, it said.
LNG project has reduced the energy scarcity while the CPEC will help Pakistan increase its income and influence to reduce poverty, said Dr. Murtaza Mughal, President PEW.
He said that China should motivate its private sector to invest in industrial projects across Pakistan particularly in the underdeveloped areas but for this, our government will have to ensure peace and dependable energy supplies.
Both the projects will have a direct impact on the lives of the general public and national economy, he said, adding that Pakistan has become the centre of attraction for international investors because of the CPEC.
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27. 10. 17
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Railway role systematically reduced to benefit private sector
The Pakistan Economy Watch (PEW) on Thursday said the role of the railway was systematically reduced to benefit some of the influential transporters which damaged the economy and inflicted losses on the masses.
Transporters are making good profits by ferrying passengers and trade goods but it has resulted in high cost of doing business which is against the national interests, it said.
The railway infrastructure is being improved to cater for the needs of CPEC which will reduce the cost of doing business, increase the competitiveness of businesses and cut annual oil import bill by almost 1.5 billion dollars, said Dr. Murtaza Mughal, President PEW.
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23. 10. 17
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Reservations of business community on CPEC proved baseless
The Pakistan Economy Watch (PEW) on Sunday asked the government to not allow anyone to slow the pace of development of the economic corridor.
It asked for an action against the elements trying to damage economic corridor for political gains amid uncertainty.
The economic corridor is a game changer project which must be completed according to the schedule frustrating local and foreign players that are against it, said Dr. Murtaza Mughal, President PEW.
He said that any issue hindering the development of this project will be a great loss, therefore, all steps should be taken to ensure timely completion of the CPEC.
Dr. Murtaza Mughal said that many powerhouses are bring completed under CPEC for which government has not taken any loans while NEPRA has not given them any special concession for tariff etc.
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18. 10. 17
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Country should not depend on few countries for internet
The Pakistan Economy Watch (PEW) on Tuesday said the demand for internet is more than its supply resulting in shortage while disruption in the service has become a permanent feature which is resulting in heavy losses.
Telecom companies, call centres and high-tech business are facing heavy losses due to frequent disruption while masses are also facing problems, it said.
The internet service providers should not rely on three sources as usual and try to get new companies involved so that people can get internet if one or two sources are disrupted for few days, said Dr. Murtaza Mughal, President PEW.
Increased demand for the internet is due to the interest of masses in the smartphones all of which are internet enabled, he said, adding that disruptions are very damaging for the businesses, he added.
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25. 09. 17
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The Pakistan Economy Watch (PEW) on Sunday said vibrant poultry industry should not be burdened with additional taxes to that it can progress.
The Rs700 billion industry should be facilitated, taxes and duties on imports should be reduced and refunds should be paid to it which will result in the creation of jobs, increased revenue and foreign exchange earnings, it said.
These steps will bring prices of poultry products down which will help masses to overcome the deficiency of animal protein, reduce health and food security problems, said Dr. Murtaza Mughal, President PEW.
He said that unabated smuggling has already increased the price of beef while masses cannot afford to eat mutton leaving them with only option to consume poultry products as consumption of fish in Pakistan is two kg per capita that is lowest in the world.
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22. 09. 17
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The Pakistan Economy Watch (PEW) on Thursday demanded steps for rapid agricultural development as the majority of the population is linked to this sector.
Around eighty percent exports of the country are linked to agriculture while dozens of industries are also tied to this sector, it said.
The prosperity of the farming communities is linked to the development of agriculture sector which merits full attention, said Dr. Murtaza Mughal, President PEW.
He said that the agricultural production has not jumped despite packages announced by different governments because such incentives are designed to benefit the landed elite and not the poor farmer.
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17. 09. 17
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The Pakistan Economy Watch (PEW) on Saturday asked the government to promote cottage industry and technical education for rapid national development.
Empowerment of women, promotion of cottage industry and attention on technical education to increase skilled manpower can reduce poverty and bailout country from the economic problems, it said.
Cottage industry, small businesses and women entrepreneurs should be given more attention to ensure rapid development, said Dr. Murtaza Mughal, President PEW.
He said that a cluster for cottage industry must be established on CPEC after every five hundred kilometers that include a technical training institute to boost the economy.
He said that over ninety-six percent businesses fall into the category of cottage industry and small businesses but this sector is neglected.
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13. 09. 17
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Govt asked to initiate negotiations with IMF
The Pakistan Economy Watch (PEW) on Tuesday asked the government to take note of worsening economic situation and take remedial steps without any delay.
The current economic situation has emerged as the greatest threat to the limping economy which needs immediate attention of the top government officials, it said.
The government should immediately start negotiations to enter into a fresh IMF programme otherwise total economic collapse cannot be avoided, said Dr. Murtaza Mughal, President PEW.
He said that exports are falling, imports continue to grow despite efforts, internal and external investments have dried up, capital is flying out of the country and economy is nose-diving which has raised concerns.
Dr. Murtaza Mughal said that negotiations with lending agencies should not be delayed as our economic situation will become weaker by the passage of time which will compromise bargaining power of Pakistan.
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10. 09. 17
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Export of raw material damaging economy, pleasing nobility
The Pakistan Economy Watch (PEW) on Saturday asked the Prime Minister Shahid Khaqan Abbasi to implement the Rs180 billion export package announced last year by the former PM Nawaz Sharif.
It asked the government to support the textile sector which is the largest foreign exchange earner and second largest employment provider after agriculture.
The export sector, especially the textile sector is the backbone of the economy which deserves the full attention of the government as it is going down since three years, said Dr. Murtaza Mughal, President PEW.
The textile sector including the sub-sector of value-added textile is providing employment to millions, it has the largest share in exports but it is neglected, he added.
Dr. Murtaza Mughal said that energy crisis, non-payment of refund claims, increasing input and energy costs and unbearable burden of taxes has increased the cost of doing business which has resulted in a significant fall in exports.
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08. 09. 17
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The Pakistan Economy Watch (PEW) on Thursday said the government should take steps to contain further contraction in the critical sector of workers remittances which is as important as exports.
Remittances have fallen by four percent in the last year, therefore, steps are needed to arrest the trend in the national interest, it said.
Concerned ministry, departments and law enforcing agencies should not discourage people involved in sending labour abroad as they are playing important role in keeping forex reserves stable, said Dr. Murtaza Mughal, President PEW.
He said that Private sector has to invest around fifteen billion dollars as input costs to realise exports of twenty billion dollars but expats spend their own money to go abroad send money without any involvement of the government.
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05. 09. 17
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Record loans of $35 billion were taken in a few years
Profitable entities were gifted to friends at dirt cheap price
The Pakistan Economy Watch (PEW) on Monday said former Prime Minister Nawaz Sharif and his economic managers damaged the national economy beyond repair.
They raised attractive slogans of rapid national development, but left the country under the severe debt burden while their own assets multiplied with an amazing speed, it said.
Now the economy can survive only with the help of IMF otherwise the country will face default in the ongoing fiscal, said Senior Vice President of PEW Kashif Iqbal.
He said that Nawaz administration took loans worth 35 billion dollars, which haven’t helped the economy or masses, but helped the finance minister to multiply his fortunes while many other politicians also plundered the national resources.
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