Islamabad, September 07, 2021 (PPI-OT):The Pakistan Economy Watch (PEW) on Tuesday said politics is dragging down the rupee to record level. The current situation is an outcome of popular economic policies framed to please the business community and now the only option to come out of the current mess seems to be another loan on harsh conditions, it said. Reducing inflation through meetings and pushing up exports to fifty billion dollars is a pipe dream, said Dr. Murtaza Mughal, President PEW.

He said that rupee was declared the best currency in Asia in the month of March but now it is the worst-performing currency hitting confidence of masses and the business community. Dr. Murtaza Mughal said that the current account deficit is increasing at a worrying pace, calls to limit the import of luxuries are falling on deaf ears, interest rate is very low, SBP is avoiding interference in the market to control exchange rate and questions are being asked about the capacity of the government to repay loans.

Pakistan’s relations with IMF are not satisfactory and the situation in Afghanistan is not stable which is contributing to uncertainties, he added. He noted that government adopted policies against the ground realities to trigger growth but these steps triggered imports as compared to exports putting pressure on the economy.

He noted that reforms have taken a backseat, loans are preferred to resolve economic issues while claims to control inflation or boost exports to fifty billion dollars an exaggeration at best. How can a country develop or increase exports where the price of energy is very high, infrastructure is in a shamble, the tax system is skewed, and regional trade is almost five percent, he questioned.

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Pakistan Economy Watch (PEW)
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