Inflation rate: manipulation will put bad effects on monitoring policy, says Asad

According to a recent survey conducted by the International Republican Institute (IRI), around 74 percent Pakistanis seem dissatisfied with the on-going economic situation in the country. In the IRI survey, 74 percent say their economic situation has worsened during the tenure of the PPP-led coalition, rising sharply from 51 percent before the party assumed power.
Unsurprisingly 74 percent name the economy and energy shortages as top priority issues. Two prominent personalities Dr Ashfaq Ahmed Khan and Asad Umer discussed the issue and shared some valuable facts. 'Bangladesh's economy is growing faster than Pakistan's, Asad Umer associated with Pakistan Tehreek-e-Insaf and a renowned businessman while talking to Aaj News in an exclusive show of Islamabad Tonight with Nadeem Malik, said that the manipulation of inflation rate will put bad effects on the monitoring policy of the country.
He said that we can only get short-term benefit by manipulating inflation rate but in the long-run it will be very damaging. He said that he told upfront that the budget deficit will not be less than Rs 1,700 billion. He further stated that we should not use the future tense to explain the destruction of the economy. He said that Pakistan has lowest growth rate in the South Asian countries.
Asad said that Pakistan is among the countries with lowest possibility that a child will be educated as he grows. He said that no body can name one country in this world that grew its economy without spending on health and education of its people. He said that most of our foreign exchange is being spent on oil and that what we are using to produce electricity. He said that there is no credibility of the government. He said that the government thinks that we are in such a unique situation that world will automatically offer us a bailout package. He said that we can go any where to borrow money but first we need to introduce economic reforms in the country. He said that rich people are not paying taxes and we expect world to help us. He said that we cannot correct economy in 90 days but can take steps in right direction.
He said that we can tax the powerful and handover state enterprises to professionals at once. He said that the country has so many resources that it can grow at the rate of 7 to 8 percent easily. Another guest of the programme, a popular economist "Dr Ashfaq Ahmed Khan" said that on papers the prices of gas have been decreased from 30 to 40 percent but there is no relief for the consumers in the bills.
He said that inflation rate on papers has been decreased considerably but in reality there is no change. He said that 8 percent inflation rate is shown by manipulation of figures by the government. According to him, the budget deficit has been shown 8 percent by the government but according to the IMF it has reached to 11 percent. He said that the budget deficit will go up in the next fiscal year.
He said that in December and January at the time of IMF payments there will be immense pressure on rupee. He said that if the current situation sustains the State Bank of Pakistan will run out of the foreign exchange reserves by the end of next fiscal year.
He said that the world can impose conditions of getting rid of the nuclear weapons to get the bailout package. He said that Pakistan should go to IMF as soon as possible for help. He said that Pakistan should also approach its real friends for borrowing money. Ashfaq said that Pakistan has resources it just needs honest leadership and every thing will be all right. He said that even if Pakistan gets honest leadership it will take at least five years to correct the economy.