Staff Report
ISLAMABAD: The Pakistan Economy Watch (PEW) on Wednesday said the worst financial mismanagement and record borrowing in the history of the country took place during the PTI regime.
As a result, the country continued to suffer from a severe economic crisis and the value of the rupee plummeted damaging livelihoods, it said.
The value of the dollar against local currency was increased by more than 62 rupees, which increased the volume of loans by billions of dollars, said Dr. Murtaza Mughal, President PEW.
He said that some Chinese companies were quietly discouraged from investing heavily in the Pakistani market which affected bilateral relations.
Dr Murtaza Mughal said that imports remained doubled as compared to exports during this period while the trade deficit this year is expected to be 50 billion dollars while the current account deficit will be 20 billion dollars which will be a challenge.
Pakistan will find itself in problems as repeated breaches of the agreement with IMF will make it difficult to obtain loans, which will only exacerbate the situation.
He said that Pakistan will have to repay 12 billion dollars to the foreign lenders which will be difficult and hence will further weaken the rupee.
Dr. Mughal said that in 1999, the country’s exports were 16 per cent of GDP, which has now fallen to 10 per cent and is declining.
Claims of increased exports are false because their volume has not increased but the price has increased in the international market.
Policies of artificial growth, avoiding real reforms, patronage of mafia, keeping failed government institutions alive through loans, and poor state of the tax system have brought the country’s economy to its knees, he observed.
Statements against the United States amount to playing with the fire which can cause economic catastrophe and civil war as Pakistan’s exports, remittances and access to credit are tied to the West, he warned.
Pakistan is already in a danger zone and authorities must act to avoid a full-blown crisis in our fragile economy resulting from irresponsible management and useless statements, he demanded.
