The Pakistan Economy Watch (PEW) on Tuesday said it is irresponsible to bankrupt the country to keep the few thousand elites happy.
For decades, expenditure has been higher than income, while adequate taxes are not being collected, which creates gaps that are being filled by loans, it said.
Now it is getting difficult to get loans as the majority of countries consider lending to Pakistan a great risk, said Dr. Murtaza Mughal, President of PEW.
He said that no political government is sure of completing its term, therefore as soon as it gets power, instead of taking drastic measures for economic recovery, it starts pleasing financiers and voters.
Policies are changed to appease capitalists who donate heavily to political parties, SROs are released frequently, competition for investors is eliminated and packages are announced to increase their profits, he added.
Dr. Murtaza Mughal said that the promotion of the elite makes them richer but people are deprived of quality and cheap goods.
In addition, every new government announces unnecessary subsidies to please the voters, which burdens the exchequer and now the state of the economy has become so precarious that questions are being asked about its survival.
Decades of policies revolving around the elite have bled the country white and economic managers are running from pillar to post to avoid a default.
For the sake of its vote bank, the new government does not want to collect taxes from the businessmen, nor does it want to close the shops in the evening which can save billions of dollars.
At present, the rulers are not informing the people about the real state of the economy and assurances are being extended.
Tough decisions are not being taken out of fear of annoyance of voters. If tough decisions are taken, people will be angry, but if not, there will be a default, he warned.
