KARACHI: The Pakistan economy is continuing under extreme pressure and the ease is missing. High jump of dollar, exorbitant petroleum prices, high rise in cost of electricity and a massive jump in the interest rate is damaging the overall condition of the economy, said Ateeq ur Rahman (economic & financial analyst).
With the passage of time social and economic disparity is growing as there is huge gap between have and have not. Additional taxes / duties of Rs170 billion imposed for meeting a revenue target of Rs7.6 trillion is demolishing the businesses like industrialization, trade & commerce, said Ateeq.
Under the prevailing situation, businesses are not even in a position to make 25 percent profit therefore with such a big interest / market rate between 23 to 24 percent, it is almost impossible to go for borrowing.
Ballooning Dollar, petroleum, electricity, interest rates day by day is helping the inflation to grow. This is perpetuating the cost of production, eventually rising the cost of consumer goods and at times the food inflation is between 30 to 37 percent, which is unbearable.
He added that in such serious situation of economy, government has to take urgent and major step to control the rise of dollar, petroleum, electricity prices. Lower down the interest rate and compensate the additional taxes / duties.
Copyright Business Recorder, 2023
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