ISLAMABAD: The Pakistan Economy Watch (PEW) on Friday said despite being a rich country, Pakistan depends on foreign loans for its survival because its economy is non-productive.
Profit in non-productive sectors is much higher than in the productive sectors therefore the investment continues to find its way to the non-productive sectors, it said. President PEW Dr. Murtaza Mughal said that many countries that gained independence after Pakistan have stood on their own feet because they have focused on production and exports.
However, he said that Pakistan has become a perfect example of elite capture and they will never allow the productive sector of Pakistan to develop as their interests are linked to the promotion of non-productive sectors.
The industrial and agricultural elite are addicted to subsidies, packages and amnesty schemes and it is difficult to form positive policies as long as they control important matters, he observed.
Pakistan’s foreign exchange reserves fell to 400 million dollars in 1998 but that crisis was not enough to act as a wake-up call and no real effort was made to improve the economy.
Now the situation has become so unfavourable due to negative policies that it has become increasingly difficult to run the country. Dr. Mughal said that at present, the country’s survival is at stake, but milk, butter, cheese, honey, chocolate, fruits, vegetables, beverages, fish, tobacco, cigarettes and even food for dogs and cats are being imported. Precious foreign exchange is spent on unnecessary imports leaving little room for industrial raw materials and machines.
He noted that as long as important economic policies continue to be planned in the interest of the ruling elite, borrowing to run the country would continue. –Agencies
