Govt policies repelling investment
Massive private capital leaving country
Negative return on deposits a reason behind capital flight
Islamabad: [19 June]
The Pakistan Economy Watch (PEW) on Sunday said the policies of the government are repelling the investment and indirectly supporting flight of capital at a time when it is badly needed at home.
Capital flight proves that some investors are not only disturbed but have lost faith in the economic policies of the government, it said.
The disappearance of wealth can result in sharp drop in the exchange rate leaving authorities with no option but to choke productive sector to keep it reserves intact, said Dr. Murtaza Mughal, President PEW.
He said that revelation of Malaysian Consul General that Pakistanis have transferred 2.1 billion dollars to Kuala Lumpur is shocking.
Dr. Murtaza Mughal said that majority of those who have shifted money belongs to Karachi which speak volumes about the feeling of people living in the commercial and industrial hub of Pakistan.
Flight of 2.1 billion dollars is tip of the iceberg as 99 per cent of such transactions are not recorded on the books, he said
"Another reason behind capital flight is the negative return depositors get from banking companies since decades," he said adding that money is channelling to countries offering higher interest rates.
Dr. Murtaza Mughal said that some controversial taxes help governments earn some additional funds but it cost country a lot in shape of billions flowing outward.
Government should revisit policies otherwise sustained flight of capital will bring economy to knees, he warned.
He said that there is an urgent need that economic managers prove their vision otherwise investors will continue to shy away keeping Pakistan dependent on loans and donations.
--
Dr. Murtaza Mughal
Cell: 0321-5157671
President Pakistan Economy Watch
--Dear All,
It's a common platform for journalists and all others who are interested in knowing about the issues that are sometimes not reported. This group favours philosophy of progress, reform and the protection of civil liberties. Please share and educate others. The owners and managers of this site do not necessarily agree with any of the information. It is an open forum and anyone that register can post whatever they like. Mails sent by members and non-members are subject to approval. However, we are not responsible in any way for the contents of mails / opinion sent by members. We do not guarantee that the information will be completely accurate. If you find content on this site which you feel is inappropriate or inaccurate, incomplete, or useless you are most welcome to report it or contradict it.
Regards,
Group Manager
0 comments:
Post a Comment