The Pakistan Economy Watch (PEW) on Wednesday said the government is considering a further hike in the interest rates which will close many businesses and leave millions unemployed.There are reports of an interest rate hike of two to three percent which if carried out will be a doomsday scenario for the businesses, it said.
Every condition of the IMF should not be blindly followed and the plight of the masses should also be considered, said Brig. (retd) Aslam Khan, Chairman PEW. He said that the government is skinning masses under the guise of IMF conditions but elites are completely insulated from the impact of these strict conditions.
Among all the measures taken so far, the surcharge of 3.82 paisa per unit of electricity is the cruelest which will affect the people badly, he said. The purpose of this surcharge is to reduce the circular debt which reached Rs2.6 trillion in the month of December last year, he informed.
The main reason for the accumulation of the circular debt is the corruption of the elite, politicians, and the bureaucracy but the people are being punished for it, he observed.
Aslam Khan said that no government has any interest in the welfare of the people and all aim is to reap the undue benefits which have bankrupted the country despite taking record loans.
The central government took loans worth Rs4t trillion in the month of January, which has brought the total debt to 55 billion and it is increasing rapidly.
Politicians and other powerful circles do not care about anything except their own interests and because of their irresponsibility, the country is not avoiding default but moving towards default.
But there seems to be no realization of the impending calamity among all circles ruling Pakistan. The warring political forces are refusing to pull back from the point which is set to bring down the entire system.