The Pakistan Economy Watch (PEW) on Monday said apathy of the government was the biggest hurdle in the country’s recovery from the economic downturn while the government always blamed former regimes and unfavourable developments on international front for all of Pakistan’s economic ills. “During the last four years, the economic managers have failed to initiate any policy reforms aimed at broadening tax net, boost productivity or reduce reliance on aid,” said PEW President Dr Murtaza Mughal.
The economic team, known for fudging figures, protecting rich and making plans based on assumptions, had been relying on borrowing to finance expenditures, which had resulted in serious economic problems, he said, adding the double-digit inflation, high public debt and looming balance of payments crisis proved the incompetence of the economic team which always prefers politics to reforms.
Dr Murtaza Mughal said the coalition government was aware that the economic situation was very precarious and only difficult decisions could help the country, but they were avoiding difficult steps in the right direction. He said failure of the government to tackle power outages, terrorism and the deteriorating law and order situation were adding a lot to the woes of a crippling economy.
“The rulers have no intention to sell or restructure loss-making public sector enterprises, bring rural elite into the tax net, boost export, restructure the industrial base or undertake any fundamental economic reforms. Pakistan needs slim and transparent central and provincial governments with good level of integrity and high standards of austerity and accountability,” said Mughal.
