The Pakistan Economy Watch (PEW) on Tuesday said Prime Minister Imran Khan’s decision to seek IMF help to overcome balance of payments crisis will stabilise the market facing turmoil due to uncertainty.
The continued indecision regarding a bailout package from IMF has damaged stock market, eroded rupee and raised concerns about the future of the economy but the decision of the premier will calm the nervous investors, it said.
The forex reserves are sliding, the deficit is increasing, payments for imports and debt servicing has become difficult and there is no money for developmental schemes, therefore, IMF loan has become last option, said PEW Chairman Brig. Muhammad Aslam Khan (Retd).
He said that prices of essentials are skyrocketing, circular debt has reached the mark of trillions of rupees while market capitalisation in the stock exchange has suffered by half a trillion rupees in one month.
Muhammad Aslam Khan said that investors suffered a loss of 270 billion rupees in the recent stock market crash due to uncertainty but now the situation will improve.
He said that government should try its best to deal with the IMF’s demand to further increase the price of gas and electricity, weakening of rupee and tighten monetary policy as it will hurt masses and the economy.
Masses are not ready to swallow more bitter pills, therefore, the power sector circular debt should not be recovered from the honest consumers who have not contributed to it, he demanded.
By: Dr. Murtaza Mughal