External loans doing more harm than good


Islamabad: The Pakistan Economy Watch PEW on Sunday said that tough conditions of International Monetary Fund IMF will deal a death blow for the beleaguered economy of Pakistan.

International lenders are not concerned about the development of Pakistan which is addicted to foreign loans since Ayub Khan’s era without any positive outcome, it said.

Unlike the common notion, the foreign loans have weakened the economy, eroded the currency and buying power of masses and promoted the interests of elite, said Dr. Murtaza Mughal, President PEW.

Pakistan, a resource rich country with unmatched human resources, has become a laboratory for lenders to find new ways and means to enslave a nation, he said.

Dr. Murtaza Mughal said that those claiming to have taken International Monetary Fund IMF loan of their own terms are misguiding masses as beggars can’t be choosers.

Insistence of the IMF on hike in power and gas tariff, tight monetary policy, reduction in powers of central bank, slapping additional taxes on poor and avoiding any tax on elite has exposed their agenda.

He said that FBR has failed to achieve tax collection target of Rs295 billion for July and August despite extracting ten billion from different companies in advance and stopping refunds worth fifteen billion which will provide an opportunity to the IMF to force PMLN led government to further squeeze masses.

Dr. Mughal said that many believe that the current monetary policy has been designed by the IMF while the governor of SBP has only announced it.

The government which has failed to safeguard life and property of the masses has not right to collect taxes, he said.

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