Govt’s focus can boot economy: moot toldMarch 15, 2016
KARACHI: Our economic issues are not so serious; governments’ focus and commitment must be present in order to frame economic-friendly policies, said Dr Moonis Ahmar Dean Faculty of Social Sciences, University of Karachi.
Chairman and CEO Invest and Finance Securities Ltd. Muzammil Aslam said that Pakistan will default in a few years if same economic policies continue. Government must set its priorities. Out of 20 billion dollars of foreign exchange reserves, around 5 billion dollars are from IMF loan while the government has taken Euro Bonds for the period of 10 years in 1 billion dollars on the interest rate of 8.25 percent which will rise to 19 percent after 10 years.
Government high officials are unclear over CPEC which depicts government’s lack of seriousness over the issue. Government announced the amnesty scheme and a target of 2.8 million traders were expected to be brought in tax net but only 3800 traders are reached till yet which is government’s failure, he said.
He was addressing at a seminar on “Chinese Investments, Macros and Impact on Capital Market” at AERC Karachi University.
He said the government has taken loan of 4 trillion rupees in their 821 days of power which has raised the foreign debt to the dangerous rate of 20 trillion rupees. Decrease in the oil prices in the global market has given a lifeline to the government but the government has failed to take the maximum benefits out of it. We are producing the mostly costly electricity from coal and the cost of LNG power consumption will also be high, he said.
In the scenario of American withdrawal of forces from Afghanistan, foreign investors are coming to Pakistan which is a positive sign and the government needs to adopt economic friendly policies, he said. Government will spend 5 crore rupees daily in subsidy for Orange Line and for only 2.5 Lakh people. This project of 170 million rupees would be a blow to our economy, he said.
Dean Faculty of Social Sciences Karachi University Prof. Dr. Moonis Ahmar in his concluding remarks said that our economic issues are not so serious; governments’ focus and commitment must be present in order to frame economic friendly policies. Criticism on useful projects of the government is not right; we must get rid of contradictions in ourselves, that’s the only way to achieve the dream of a welfare state.