Federal budget not to improve sentiments, investment climate: Pakistan Economy Watch

Islamabad, June 10, 2015 (PPI-OT) The Pakistan Economy Watch (PEW) on Wednesday said budget will not improve the investment climate in the country which will shrink the industrial base while promoting tax evasion and flight of capital. Industrialists would prefer trading, real estate and construction sectors over industrial expansion while many would relocate or simple transfer funds abroad bringing rupee under pressure, it said.

Government has done nothing in the budget to encourage investment in industrial sector or reverse the trend among the businessmen to prefer trading over industry, said Dr. Murtaza Mughal, President PEW. He said that the new tax measures, GIDC and petrol price hike will contract growth and the package for Khyber Pakhtunkhwa will remain counterproductive because law and order situation would discourage investors.

He said that banks would continue to prefer forwarding loans to the government as discourage private sector in absence of any directions to them. Government has claimed reduction in unemployment and provision of 2.5 million jobs is the new fiscal which is baseless, he said, adding that creation of new jobs require minimum of seven percent growth rate.

For more information, contact:
Dr. Murtaza Mughal
President
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad
Tel: +92-51-2510375
Fax: +92-51-2802449
Cell: +92-321-5157671
Email: president@pakistaneconomywatch.com
Web: www.pakistaneconomywatch.com