Economist, Hafiz Pasha believe that abolishment of subsidies on energy as per the IMF's primary conditions for the two-tranche loan of 7.6 billion dollar will in next few months challenge the national resilience. The consequential victims will be the industries and poor masses with dangerous sings.
He expressed astonishment over the country's agreement with the Fund on such a harsh condition for the loan and said the nation will suffer as a result of the subsidy cut on power. Now the public will pay more for only six hours available electricity out of 24 hours.
He said that the negative indicators in the excise duty collection seem to stress the economy further under the Fund conditions. He cast doubts over the 45 percent increased tax collection target in the next six months and said that it is "biologically impossible." He criticised rise in the taxation rate, saying that it was not a wise decision at the time when economy was already struggling.
Inflation is resisting to decline despite world-wide it has registered a significant down trend as the core inflation on the contrary surged from 13 percent in June to 19 percent in December last year, he said this at the seminar on "Mid Year Review of the Economy," organised by MAP on Thursday at a local hotel.
About the wheat production, Hafiz said that the Rs 950 support price is based on reality and the government has to be committed. He advised that the government should focus on the country's food security, as there is more food insecurity now than 1991.
There has to be a political will to implement the Fund's programme, he said and added that the government will now have to spend more on the poor as it is also one of the conditions for the loan. The State Bank of Pakistan's data suggests non-performing loan has gone up 15 percent during the last three months, he said it is an alarming sign. Earlier, Dr Ikhtiar Baig gave his presentation on the country's economy.