Islamabad, December 27, 2021 (PPI-OT):The Pakistan Economy Watch (PEW) on Sunday said the global economic system is rapidly heading towards collapse. The global economic system has become very sick, and it needs immediate surgery postponing, which would be suicidal, it said. The low-interest-rate environment in almost all countries is robbing the poor to fill the coffers of the rich, which is not sustainable, said Dr. Murtaza Mughal, President PEW.

In a statement issued here, he said that incredibly low-interest rates in developed countries have become a major threat to the global economic system. He said that the current situation could cause a serious global economic crisis never seen in the world’s history, as a lot of cheap capital was circulating in the market.

Dr. Murtaza Mughal said that the situation is benefiting the investors and harming the people as inflation is rising because of the policies of central banks and people’s money is rapidly flowing into the coffers of capitalists. The rich are getting richer while the people are not getting anything against their savings, which is creating widespread disappointment. He observed big companies are buying competing companies with the help of cheap capital, which has created an atmosphere of monopoly in many countries.

Instead of controlling the situation, central banks in the developed nations are distributing trillions of dollars among large corporations under various guises and most of the money is going to the stock market and real estate market, which has led to a steady rise in the value of plots, houses and offices.

Now it has become a dream for a large section of the people to own a house while with the rise in property prices, rents are also rising which is affecting the people. Billions are being spent by the rich to buy properties in the western countries and if this situation is allowed to continue, people will see a crisis that will make them forget the devastation of the 2007-08 global economic crisis, he warned.

For more information, contact:
President,
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad
Tel: +92-51-2510375
Fax: +92-51-2802449
Cell: +92-321-5157671
Email: president@pakistaneconomywatch.com
Web: www.pakistaneconomywatch.com