This is apropos a Business Recorder news item "Low prices of commodities, slow CPEC spending behind lower inflation" carried by the newspaper on Thursday. According to it, low price of international commodities, including oil's, as well slow spending on China Pakistan Economic Corridor (CPEC)-related projects may have led to lower inflation for the current fiscal year despite heavy government borrowing and slippage in the fiscal deficit.
It has also reported that fiscal deficit for 2016-17 would be difficult to contain below 5.3 percent after a significant shortfall in tax collection by the Federal Board of Revenue (FBR).
Low commodity prices and a lower inflation are welcome. But what about Public Sector Development Plan (PSDP)? What about new job opportunities?
Little do our policymakers know that slow spending on the CPEC will not augur well for country's growth prospects in long-term.
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