Former President of Islamabad Chamber of Commerce and Industry (ICCI) Dr. Shahid Rasheed Butt on Saturday said the industrial package for investors is a political move which will increase the problems for the economy.
The political decision will increase the deficit and further reduce the value of the rupee, which will increase inflation, he said.
Shahid Rashid Butt said that important economic policies are failing, as the problems are not diagnosed properly.
In a statement issued here today, he said that the people will pay the price of the relief and incentive packages as the government lack resources to fulfil the promises.
The move will not go down well with the IMF, World Bank and Asian Development Bank as it can hit country’s reputation and strain relations with international institutions.
The business leader said that it would have been better if these announcements had been accompanied by steps for long-term sustainable economic growth coupled with reduction in unnecessary expanses.
As of June 30, 2018, the domestic debt was Rs29.8 trillion, which the present government had increased to Rs51.7 trillion by December 2021, while the foreign debt of $95 billion has been increased to $130 billion.
The circular credit is also increasing which is now reaching Rs2.5 trillion. The current government has increased the circular debt of electricity sector up to Rs1400 billion while the circular debt of the gas sector has also been steadily increasing to reach almost 700 billion.
The rupee has lost 50% of its value during this tenure of the incumbent government while its value will further decrease due to recently announced packages, he said.
