Islamabad
Pakistan Economy Watch (PEW) on Sunday said an enormous interest rate hike by the State Bank of Pakistan to control stubborn inflation and deficit will shatter the masses and businesses.
“Due to the deteriorating economy, the central bank will soon raise interest rates again while the government will raise gas, petrol and electricity prices but it will never reduce its lavish spending to improve the situation which will keep rupss, the worst performing currency in Asia under pressure” said a statement here by PEW.
President PEW Dr. Murtaza Mughal said that interest rate hike was a result of the decision of the United States to punish Pakistan for its increasing ties with China and pursuing independent Afghan policy.
He said that disastrous economic policies have increased the current account deficit and it has exceeded all targets by 4.7 per cent while interest rates hike will increase the country’s debt by at least Rs 300 billion.
Pushing Pakistan at the top in Asia as far as the inflation is concerned, the government will have to put emphasis on economic stability instead of growth, as inflation is skyrocketing and the balance of payments is in serious jeopardy, he added. Dr. Mughal said that the government has remained more concerned with its reputation than the economy which was a perfect recipe for disaster.
