September 27, 2020

Parliamentary Panel Formed To Access High Inflation Rate Issue

The National Assembly standing committee on Finance, headed by Mr. AsadUmer, formed a parliamentary panel to solve the high inflation problem being faced by the country. The panel formed, consists of members from all the three major political parties and has also requested for the expertise of four economy experts from the private sector. The members of the panel include Dr. Aisha Ghaus Pasha of PML-N, Hina RabbaniKhar from PPP and Dr. Ramesh Kumar Vankwani from PTI. The experts requested for their input include, former finance minister Dr. Hafeez Pasha, former principal economic advisor of the finance ministry Mr. SakibSherani, chartered accountant Mr. AshfaqTola and President of LCCI Mr. Almas Haider.

Providing their responses to the inflation rate problem being faced by the country, the experts said that the IMF bailout package of $6 billion was not thoroughly negotiated and the program was not in the best interest of the people. Dr. Pasha, being critical on the issue said that the negotiators of the bailout package were not clear of the conditions of the IMF package. Dr. Ramesh Kumar of PTI said that the economic policies of the government caused a shutdown of almost 40% of business in Pakistan as nobody could afford operating business at an interest rate of 16%. Dr. Pasha said that they will be meeting the IMF delegation, currently in Pakistan for a week-long assessment, and would convey to them the negative aspects of the bailout package. He said that the IMF delegation would be informed that their policies were hurting the people and the business environment of the country has deteriorated. Hina RabbaniKhar from PPP, was of a different point of view and said that the double-digit inflation rate was due to the indigenous factors such as the monetary policy, taxation policies and exchange rate and did not have much to do with the IMF conditions.

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