PKONWEB Report – Calling the most recent financial assistance agreement between Pakistan and International Monetary Fund the “best” deal, Prime Minister Imran said the corrupt political mafia in the country wants to blackmail the government on pretext of economy.
“This corrupt political mafia wants to blackmail [the government] on the pretext of economy,” he told the participants of Khyber Pakhtunkhwa cabinet members meeting in Peshawar Saturday.
Referring to the prevailing condition of the formal economy, the prime minister said from the very first day he had been hinting at tough days ahead, as the government had inherited a record fiscal deficit.
Vowing to never turn his back on the masses, PM Khan said he struggled against this “rotten system” for 22 years and the political mafia, which had thrived on the old system, wanted to create impediments in the way of a new system.
According to independent observers, Pakistan’s economy is in a disastrous state. Not just the prime minister but the last finance minister (Asad Umar) have acknowledged this truth, publicly.
“Not only is every key economic indicator in poor shape, all indications suggest that things are going to get much, much worse. Pakistan’s economy is going to slow down to levels not seen for more than a decade, with inflation and unemployment both reaching proportions not seen for a decade. And this is just the beginning,” says S Akbar Zaidi, a political economist in his latest op-ed.
Mr. Zaidi writes, “the entire responsibility for the wreck that is the Pakistani economy lies squarely on the shoulders of Pakistan’s ruling and propertied elite.”
Analyst Dr. Farrukh Saleem commented on social media today: “Rupee crashing. Stock market crashing. Why? 1.Yes, we have a trade deficit but we have had one for a long time. 2. Yes, we have a budget deficit but we have had one for a long time. 3.The addition to the above is the Trust Deficit. This should be the Govt’s top-most priority.”
Within two days the rupee has lost about five per cent of its value, triggering powerful anxieties across the business community, with the financial sector on the frontlines.
Aftershocks from Thursday’s exchange rate drop continued to cascade through the financial markets on Friday as the rupee saw further decline in both the open and interbank markets and the stock market saw an 800-point fall, closing off its worst week in over a decade and half.
Currency experts and dealers believe the latest Rupee devaluation is part of a possible IMF agreement in near future for a $6 billion 3-year loan package.
Mr. Saleem tweeted a “Financial Warfare 101” graphic today, suggesting the ongoing roller-coaster situation could be an orchestrated event:
To help rein in the continuous decline being seen at the stock exchange, there are ongoing talks of a Rs.20 billion “market support fund” through the
National Investment Trust, market sources said on the condition of anonymity.