Wishful thinking of leaders can lead Pakistan to default: PEW

Lahore: Leaders of the trading community on Tuesday said ignoring the advice of International Monetary Fund (IMF) and delaying negotiations with the lender is a recipe for economic disaster.

Early negotiations with the international lender will be good for reputation of the country while delay will hurt standing, currency and rating of Pakistan, they said.

President All Pakistan Anjuman-e-Tajran Khalid Pervaiz and President Anjuman-e-Tajran Lahore Shahid Bilal said that the economic managers of the incoming government should not pin hopes on expected inflow of money.

Speaking at a discussion at Pakistan Economy Watch (PEW), they said that economic managers should take decisions in the national interest based on the ground realities.

Pervaiz and Bilal said that FBR has again failed to fulfil collections target and it has given lame excuse which is not acceptable.

Similarly, ignoring negotiation for an IMF on the pretext that Pakistan will auction 3G licence, get $800 million from Etisalat, 1.6 billion dollars as CSF reimbursement and aid from friendly countries are all expectations.

They said that energy crisis is not going to go away anytime soon which will keep exports and forex reserves down and balance of payments situation unstable which can result in a doomsday scenario in absence of IMF loan.

Speaking on the occasion, Dr Murtaza Mughal, President of the PEW expressed concern over the impression that the new government does not need to seek an immediate IMF programme.

He said that masses have pinned high hopes on the nest government but the PML-N cannot reverse damage done by PPP-led coalition in last five years.

Economic managers of the next government should plan to overcome staggering economic challenges and take proper decisions lest Pakistan faces a default, warned Dr Mughal.