No luxury of time for the new government: PEW

The Pakistan Economy Watch (PEW) on Thursday said the incoming government is to face a dire economic situation, which will require the undivided attention of new economic managers to save the country from a grave crisis.

The incoming government should carefully formulate its response to the mounting economic challenges without any delay while the opposition parties should also cooperate in the national interest to stop the current crisis from reaching to the dangerous proportions, it said.

The new government should focus on forex reserves as the economy is burning around 1.5 billion dollars per month which is not sustainable given the weak position fo the foreign exchange reserves held with the central bank, said Dr. Murtaza Mughal, President PEW.

He added that option of a mini-budget should be avoided as it will take a toll on masses and the troubled economy while steps should be taken to tame circular debt which has become a threat to the power sector.

The masses are very hopeful about the resolution of their pressing problems, he said, adding that the incoming government should make a plan to borrow at least ten billion dollars from the IMF or other sources to keep the economy running smoothly.

Dr. Murtaza Mughal said that the new government should avoid immediate steps which can result in worries among the business community as many important contracts signed by the PML-N government merits probe.

A delay in economic management, curtailing the current expenditure and imports, reforming tax structure and bringing an end to data manipulation initiated by the PLM-N will result in uncertainty and the situation will deteriorate into an acute crisis, he warned.

He said that the new government does not have the luxury of time, therefore, burying politics of vengeance and pursuing opponents will not only improve its image but also infuse confidence in the masses and the business community.