The Pakistan Economy Watch (PEW) on Friday said it has become impossible to provide relief to the flood victims due to debt repayments, strict IMF conditions, rising inflation and a declining economy.
Electricity and oil are getting expensive, and many imports are being stopped but the rupee is depreciating due to a lack of confidence in the market, it said.
Despite grim economic conditions, the political fever is not giving the government time to plan for the rehabilitation of the flood victims and take the right economic decisions, said Dr. Murtaza Mughal, President of PEW.
He said that foreign loans have exceeded one hundred and thirty billion dollars, while local loans are even more; the IMF loan stabilized the rupee for a few days in the month of August but now it is falling rapidly again.
Dr. Murtaza Mughal said that the politicians who are claiming to improve the economy by putting the country’s interest above all else for power, have forgotten that they have taken record loans in the history of the country without showing any progress.
He said that dependence on loans and grants has not allowed the economy to flourish on a sustainable basis and wastage of resources for non-productive activities is still rampant.
Wrong decisions and mismanagement will soon result in the 24th IMF bailout package as rulers have developed a habit of surviving on loans and grants, he said.