Home / Knowledge / News / Strategy to tame inflation needs review: PEW
Strategy to tame inflation needs review: PEW
11
Feb '09
The Pakistan Economy Watch (PEW) on Wednesday said systematic plan of action to bring inflation down needs to be revisited as it is threatening some most critical sectors of the economy.

State Bank of Pakistan seems very concerned about inflation, as everything has become more valuable except rupee. However, it seems that successful efforts to bring down inflation are also bringing industry, manufacturing, exports and number of employed down.

“The survival of manufacturers, exporters and millions of employees is at stake due to cost of credit,” said Dr. Murtaza Mughal, President of the PEW. Industrial units are closing down in large numbers which is sending wrong signals.

Many industrial units are not viable anymore but the owners are running them to remain in business, keep presence in international market or preserve the family honour, he said.

Talking to a group of Industrialists he Vice Chairman of PEW Muhammad Akram Shahid and Dr. Murtaza Mughal said, “There must be some missing links in the monetary policy; every thing cannot be compromised just because some policymakers feel strongly about progressive price increase.”

Suppressing inflation is not the only obligation of the regulators. Who will frame policies to boost or at least maintain domestic production which is sliding at a fast pace threatening whole system, he asked.

“We have developed habit of obeying every demand of the international lenders except for taxing sacred cows,” he said. The tendency is an obstacle in achieving tax-to-GDP ratio.

With one of the highest power consumption requirements the world which has nothing to do with the development, one of the highest interest rates, widening trust deficit and uncertainty touching skies, we should have concrete plans to revive ailing economy.

Otherwise, he stated, annual development spending would have to be compromised.

Inflation is not the only threat; we should also take sliding savings and revenue collections into account. Consumer finance conditions or banks needs to be made stringent to block unplanned expansion and avoid any crisis.

Apart from high interest rates, identification of the leading indicators accelerating inflation is imperative. Slashing petroleum prices can also bring down inflation soothing worries of policymakers.

Economy should be set free from the shackles of a high-interest squeeze. There is a need to act swiftly before the damage goes beyond repair.

Pakistan Economy Watch


Must ReadView All

Chinese firm sets up garment production chain in Vietnam

Apparel/Garments | On 13th Dec 2017

Chinese firm sets up garment production chain in Vietnam

Worldon Vietnam Co. Ltd under the Chinese Shenzhou Group is likely to ...

Courtesy: SATO Global Solutions

Information Technology | On 13th Dec 2017

Sensor networks improve inventory management

Sensor networks like radio frequency identification (RFID) and smart...

Courtesy: ABARES

Textiles | On 13th Dec 2017

Australian cotton production to grow 4% in 2017-18: ABARES

Cotton production in Australia is forecast to rise by 4 per cent to...

Interviews View All

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

Top executives
Textile industry, India

The event should be organised every year

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search