The Pakistan Economy Watch (PEW) on Monday said that securing IMF loan was not a success unless the government ensures proper utilisation of borrowed money to the satisfaction of all stakeholders.
It observed that the real test of the government would be to best utilise the money and fulfil promises with the international lender to improve economy and boost credibility.
PEW President Dr Murtaza Mughal said, “Pakistan was left with no option but to accept IMF conditions or face a default as the former government left Rs 14.3 trillion of domestic loans, Rs 500 billion of circular debt, external financing requirements of $ 11.5 billion and budget deficit at 9 percent.”
Dr Mughal said that Pakistan would have been a developed country if half of the money borrowed in the past has been properly utilised. Taxing agricultural income to balance the taxation regime is not a favourable decision.
Moreover, he said that many former governments ignored economical ways to secure energy and preferred costly western solutions which have resulted in an energy mix. The country is using 75 percent of costly fuels and only 25 percent of cheap solutions which has increased unit price to Rs14 per unit, where Rs 5 is given as subsidy. He warned that energy theft has touched Rs 250 billion which would register increase if the government continued to ignore the issue.
The areas with high theft ratio should face more power cuts while the consumers of the regions with minimum theft should enjoy better power supply, he opined.
Such a decision will reward honest consumers and push people to point towards power thieves which will improve overall situation, said Dr Mughal.
