Islamabad: Chairman Coordination FPCCI Raza Khan on Sunday said budget is full of contradictions and based on unrealistic assumptions that will not help country, economy or masses in any way.
Desired targets cannot be achieved in absence of any positive steps to mobilize resources he said adding that budget is a gift for the elite enjoying unjustified exemptions. It promises another difficult year for poor masses and businesses.
There is no chance to restore macroeconomic stability, create jobs or improve quality of life of masses in the next fiscal, said Raza Khan in a statement issued here today.
He said that growth rate has dived to 2.4 per cent, per capita income is stagnant, fiscal deficit is at 6 per cent, investments have dried up, external capital flow has stopped, inflation stands at 14 per cent, borrowings have crossed all limits while savings are declining.
The issues of energy shortages, insecurity, instability, bankrupt public sector enterprises and struggle among political parties will continue to drag economy down in the next financial year, he added.
He said that the target to reduce the budget deficit to 4 percent is a daydream as steps to make it a reality were deliberately avoided by economic managers.
Government will continue to push a monetary policy that choke the productive sectors, it will be printing more currency without considering the impact on poor masses, he said.
Raza Khan said that some steps have been taken to improve banking services but nothing has been done to safeguard the rights of depositors who are getting negative returns since long.
The pace of economic reforms has not only irked IMF to a level where it has stopped disbursement but it amounts to punishing honest tax payers and masses to please nobility which is failure of the government, he said.
The government will be unable to achieve any economic target set for the next year helping us to retain the honour of one of the slowest growing countries, he said.
For more information, contact:
Muhammad Raza Khan
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)