Islamabad, October 25, 2021 (PPI-OT):The Pakistan Economy Watch (PEW) on Saturday said the immature statement of Governor of the central bank regarding benefits of devaluation is shocking. Such baseless statements by leaders of ruling party are acceptable but a political statement is undesirable from a person who have been entrusted to run the central bank and streamline the sinking economy, it said. Why local currency is shedding value if the economy is sound and relations with international institutions are cordial, said Dr. Murtaza Mughal, President of PEW.
Now, a loan of one billion dollars from IMF cannot resolve our problems, the government will have to burden the poor to avoid a default on its obligations, he said. He added 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.
Now, 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.
Despite 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. He said that failure in striking a deal with the IMF should be accepted.
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