Govt asked to reform SBP, PSEs

The Pakistan Economy Watch (PEW) on Sunday said the government should provide autonomy to the State Bank of Pakistan (SBP) and install professional management in the bleeding Public Sector Enterprises (PSEs) to guarantee an economic revival.

PSEs have not been reformed despite the promises made by the top officials of the incumbent government, while the SBP’s sole focus was to ensure the provision of cheap loans to the government in violation of rules which took a toll on the economy, it said.

The central bank continues to cheat the masses about various issues including agricultural loans of which 90 per cent are distributed in one province, said President PEW Dr Murtaza Mughal.

He said that SBP triggered the inflation and crowded out private sector which contributed to an unemployment crisis, as a record number of businesses were closed down.

Dr Murtaza Mughal said that another institution took little interest in regulating the corporate sector and served the purpose of influential stock brokers and insurance mafia.

He said that the tax net was intentionally shrunk while PSEs were ruthlessly used to please party workers, resulting in colossal losses to the public exchequer.

PSEs will only swing to profit if run on professional basis by competent management, he remarked adding that those who damaged Pakistan Railways should be held accountable.

He said that Pakistan can only attract investment and gain the confidence of business community if it initiates meaningful reforms in SBP and PSEs.

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