Loud Thinking September 27, 2013 at 07:12AM

Is IMF ringing the death knell for the economy?

An alarming news article published by the daily “Pakistan Today”.

Pak caught into currency devaluation trap: PEW

ISLAMABAD – The Pakistan Economy Watch (PEW) on Thursday said that the local currency was being destroyed deliberately on the command of IMF. The negotiating team of the international lender trapped Pakistani officials during face-to-face negotiations which pushed country into a severe currency crisis. The IMF team that carefully laid this trap knew that Pakistanis were highly unlikely to walk out of the talks even if the vital national interests were to be compromised, said Dr Murtaza Mughal, President of the PEW. Rupee has shed over nine per cent value against major currencies, especially USD since PML-N formed government which speaks of the competence of their economic managers, he said. Dr Murtaza Mughal said the situation had dented the confidence of masses and business community while it was hurting the popularity of the party which claimed to be promoting pro-business policies. He said the situation had not only exposed the claims of SBP governor and the finance minister but it had been pushing up cost of living and cost of production which was leaving masses in a lurch and ensuring retreat of locally manufactured products from the international markets. The situation will hurt forex reserves, augment loans, trigger unemployment and deteriorate law and order situation which will push millions of unemployed to indulge in terrorism, crimes or suicides. The failure of economic managers and the SBP will also hit remittances and give a new life to the illegal business of hawala and hundi, he observed. Dr Murtaza Mughal said that Pakistan imported fossil fuel and edible oil worth 18 billion dollars which will be enough to make life of dejected masses more miserable. In a situation when economy was leading on path of destruction, the SBP governor and the finance ministers were enjoying foreign trips while finance ministry officials had embarked upon an unending round of useless meetings, he noted. He said the IMF released only 540 million dollars as first tranche pushing our managers to take 625 million dollar loan from commercial banks which worsened the situation. On the other hand, the IMF is so happy with their success that they are not leaving any opportunity to praise the ‘reforms’ of incumbent government, he added.

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