KARACHI – The Pakistan Economy Watch (PEW) on Friday said why local currency is shedding value if the economy is sound and relations with international institutions are cordial.
Why are the top officials deceiving the people by telling them the benefits of devaluation of the rupee, it said.
Managing the troubled economy is no longer just a matter of the IMF as one billion dollars cannot resolve our problems, the government will have to skin to poor to avoid a default on its obligations, said Dr. Murtaza Mughal, President PEW.
He said that the government is trying to get more loans to avoid a default as the passion for artificial development has brought the economy to the brink of collapse.
The situation has become so serious that it is no longer up to the IMF to handle it and the government will have to devalue the currency, increase interest rates, revise electricity and gas tariff, impose new taxes and control imports to avoid bankruptcy, he observed.
He said that the IMF is also insisting on implementing its policies to reduce spending and increase inflation instead of understanding the compulsions of developing countries and helping them out of trouble.
He noted that the current situation in developing countries is more serious as compared to the global economic crisis of 2007-2008 which evaporated trillions of dollars but the IMF has not learned a lesson and it is repeating its mistakes from the global financial crisis which is hitting billions of people.
Ddespite these worrying circumstances, the government is not interested in improving relations with the opposition, and nothing is being done to save the poor people from the current inflation and shock.
