Inflation serious threat to economy: APBF
Says govt's plan of taking IMF assistance will result in price hike
Says govt's plan of taking IMF assistance will result in price hike. PHOTO: FILE
LAHORE:
The All Pakistan Business Forum has said that the target of taking exports to $35 billion by 2020 is much below Pakistan's potential, asking economic planners to facilitate non-textile sectors as well to ensure a sustainable increase.
APBF President Ibrahim Qureshi, however, said that the most serious threat to the economy in the new fiscal year would be inflation.
"Governments go on spending sprees, triggering inflation in election year," Qureshi was quoted as saying in a statement released on Friday.
"This happened in 2008 as well as in 2013. Inflation would also be a threat to rupee stability."
Rejecting the government plan of approaching the International Monetary Fund for financial assistance once again, he said it would bring a fresh wave of price-hike. He said people would not benefit from the IMF loan as long as lavish spending continues.
He said the IMF loan would have devastating effects on the economy, as with more taxes and increased rates of utilities, cost of production would further increase. This will render Pakistani exports uncompetitive in the global market, he added.
He argued that policies dictated by the IMF are not always suitable for the situation of the country. He argued that there were several examples of how the IMF failed to understand the dynamics of the country they were dealing with.
Published in The Express Tribune, January 27th, 2018.
The All Pakistan Business Forum has said that the target of taking exports to $35 billion by 2020 is much below Pakistan's potential, asking economic planners to facilitate non-textile sectors as well to ensure a sustainable increase.
APBF President Ibrahim Qureshi, however, said that the most serious threat to the economy in the new fiscal year would be inflation.
"Governments go on spending sprees, triggering inflation in election year," Qureshi was quoted as saying in a statement released on Friday.
"This happened in 2008 as well as in 2013. Inflation would also be a threat to rupee stability."
Rejecting the government plan of approaching the International Monetary Fund for financial assistance once again, he said it would bring a fresh wave of price-hike. He said people would not benefit from the IMF loan as long as lavish spending continues.
He said the IMF loan would have devastating effects on the economy, as with more taxes and increased rates of utilities, cost of production would further increase. This will render Pakistani exports uncompetitive in the global market, he added.
He argued that policies dictated by the IMF are not always suitable for the situation of the country. He argued that there were several examples of how the IMF failed to understand the dynamics of the country they were dealing with.
Published in The Express Tribune, January 27th, 2018.