KARACHI: President Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain has said that the devaluation failed to boost exports while it contributed to inflation and poverty as the devaluation of one rupee against dollar increased debt by Rs 100 billion.
He said the government has borrowed record 11.3 trillion rupees over the last two years which have increased debt to GDP ratio by 87.2 percent.
The debt to GDP ratio was 86.1 percent during 2019 which has been increasing rapidly since then, he said.
Mian Zahid Hussain said that foreign loans have increased by 52 percent from June 2018 to June 2020, which is a matter of concern.
He said the increase in the debt can be attributed to IMF directions which resulted in a massive devaluation of rupee from Rs 110 per dollar to Rs 167.
He noted that currency is always devalued on the directions of IMF but the reforms agreed with the IMF have never been implemented.
These reforms included proper economic and administrative policies, improving tax administration, reducing reliance on indirect taxation, just distribution of wealth, transparency etc.
Copyright Business Recorder, 2020
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