With reference to the World Bank and the International Monetary Fund reports on the alarming state of Pakistan's economy, the opposition on Saturday urged the government chalk out a new line of action with the consultation of the Parliament to come out of existing economical crisis.
The opposition leaders were of the view that the 'honeymoon' with the post 9/11 massive inflows was over and said the rulers should forcefully resist the pressures of international financial institutions for devaluation of the currency.
They did not agree to the perception that the Pakistan's currency was overvalued and observed that the fact was there had been too much dependence on service sectors and pursuit of demand-led growth.
Talking to Business Recorder, distinguished economic expert and Muttahida Majlis-i-Amal Senator Professor Khurshid Ahmed said the government had neglected agriculture and industrial productions, which were important component of the national economy.
This approach had been the major reason behind slow production and decline in exports, he opined. The senator expressed concern over what he called the mounting pressure from the international institutions on Pakistan to devalue its currency. "Devaluation will be disastrous. The government needs to make a rational production and efficiency-oriented restructuring of the economy with prime focus on agriculture, industry, emergency prices and cost of capital," he suggested.
The MMA lawmaker strongly believed that devaluation would not provide any real relief or fillip to production and exports, both in terms of quantity and foreign exchange earnings.
He said there was no wrong with foreign exchange policy but it was lying with domestic production strategies and fiscal and monetary policies. The government, he hopefully believed, would not give into the foreign agencies' pressure and would opt for restructuring economic policy in consultation with the Parliament.
Pakistan Muslim League (Nawaz) Information Secretary and former deputy chairman Planning Commission Ahsan Iqbal said: "World Bank and IMF reports have confirmed the opposition's anxieties that the honeymoon period of the government economic policies is over." He pointed out that most of $5 billion injection into the country's economy was from remittances of overseas Pakistanis.
Due to political instability in the country, the investments towards broadening the productive base of agriculture and industrial sectors couldn't be made, he noted.
Funds were channelled towards speculative activity in real estate and stock market. The infrastructure had deteriorated, social sectors hadn't improved and economic inequality had grown to dangerous proportions, he argued.