President, Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain, has said that devaluation of PKR and loan from IMF have created additional pressure on Pakistan Economy by increasing debt servicing.
He feared that repayment to the IMF and Paris Consortium loans would push the debt servicing as high as $10 billion in the next two to three years.
Hussain stated that IMF also endorsed his viewpoint, published recently that nose-diving exports compelled Pakistan away from availing benefit of low oil prices and robust remittances from overseas Pakistanis and if revolutionary steps were not taken in time, it would have severe pressure on Foreign Reserves and Balance of Payment (BOP). Tokhir Mirzoev, the IMF resident representative in Pakistan reiterated the same during an informal chat with select group of journalists on January 22, 2016 at Islamabad.
He stated that exports in July to December 2015 declined to $10.315 billion as compared to $12.639 billion that of July to December 2013 while remittances from overseas Pakistanis immensely increased to US $9.735 billion in July to December 2015 as compared to that of $7.792 billion in July to December 2013.
Zahid Hussain said that in the last two years, decline of 18.39 percent in exports was that much severe that could collapse the economy and it has not only neutralised the impact of enormous increase of 24.94 percent in remittances but also lead toward drawing from IMF, additional imposition of taxes of PKR 40 billion and devaluation of Pak Rupee (PKR) against US Dollar.
Hussain suggested the government to secure existing facets and search for new avenues to increase export proceeds. He further stated that encouraging efforts were needed from Govt. and Govt. Institutions.
He also stressed the need to laid down the performance criteria for each and every institution.
He said that IMF also endorsed viewpoint that structural reforms were critical to economic success. Comprehensive monitoring system for tax audits, amendments to the Pakistan Penal Code 1860 and the Code of Criminal Procedures 1898 and amendments to the Gas (Theft Control and Recovery) Ordinance 2014 were necessary, he added.
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