Central bank should be autonomous
The Pakistan Economy Watch (PEW) on Sunday said government should provide autonomy to the State Bank of Pakistan (SBP) and install professional management in the bleeding Public Sector Enterprises (PSEs) to guarantee economic revival.
PSEs have not been reformed despite the promises made by the top officials of the incumbent government while the SBP’s sole focus was to ensure provision of cheap loan to the government in violation of rules which took toll on economy, it said.
The central bank continue to cheat masses about various issues including agricultural loans on which ninety percent are distributed in one province, said Dr. Murtaza Mughal, President PEW.
He said that SBP triggered inflation and crowded out private sector which contributed to unemployment as record number of businesses were closed.
Dr. Murtaza Mughal said that another institution tool little interest in regulating corporate sector and served the purpose of influential stock brokers and insurance mafia.
He said that the tax net was intentionally shrunk while PSEs were ruthlessly used to please party workers resulting in colossal losses to the public exchequer.
PSEs will only swing to profit if run on professional basis by competent management, he remarked adding that those who damaged Pakistan Railways should be held accountable.
He said that Pakistan can only attract investment and gain confidence of business community if it initiates meaningful reforms in SBP and PSEs.—PR