PEW asks economic managers to prefer reforms over loans

Lahore : The Pakistan Economy Watch (PEW) on Thursday asked the economic managers to focus on reforms as emphasis on acquiring loans is against the national interests.

Excessive focus on loans has pushed foreign loans to seventh three billion dollars which the GDP lacks repayment capacity, it said.

Getting more loans and avoiding meaningful reforms amounts to enslaving whole nations and the coming generations, said Dr. Murtaza Mughal, President PEW.

He said that despite the announcement of the economic managers that foreign loans are no more required, a new loan of 800 million dollars has been secured from the Asian Development Bank (ADB) for power sector reforms.

Our policymakers have agreed to all the conditions forwarded by the ADB which is disturbing, he said.

Dr. Murtaza Mughal said that those who claim to boost tax collection threefold in three years should inform the nation that what initiatives have been taken in the last three years to reform the power sector.

Masses must know why the existing taxpayers have been burdened while critical sectors are being kept exempted, he demanded.

He said that government has saved seven billion dollars in oil import bill but this money has not improved any indicator while export sector has been damaged beyond repair by blocking the refunds.

Dr. Murtaza Mughal said that power and gas companies have been allowed to play havoc with the consumers, LNG is being purchased on inflated rates while there is no end to securing loans from lenders.

Government continue to pay more attention to energy projects while ignoring critical sectors of health, education and taxing agricultural income for political reasons which is against the national interests he said.