|
Poor policies led to Moody's downgrading-Economist says
|
|
ISLAMABAD: Independent economists have said that due to government's inappropriate economic policies to cope with depressive economic situation of the country Moody's downgraded Pakistan's sovereign rating to its lowest level ever.
Talking to Online renowned economist Dr Salman Shah said that economic manager's unsuitable policies have brought the country eight years back rather bringing some improvement in prevailing worsening economic situation.
"Government inapt polices is main hurdle in the way of promoting investment in the country which should be made investment friendly," said Dr Salman Shah.
Well-known Economist Dr Ashfaq Hassan khan said that political leadership and economic managers should be blamed for downgraded credit rating of Pakistan as economy of the country is not on their radars screen.
"Business is thriving here and political leadership and economic managers have no anxiety with growing deteriorating economic situation of the country," he added.
President Pakistan Economy Watch (PEW) Dr Murtaza Mughal said that country's current account balance and foreign exchange reserves have worsened which were responsible for Pakistan's downgraded credit rating. He told economic trouble shooters of country have taken Pakistan on the verge of destruction economically as they were not taking pain to make polices which will help to bring economic prosperity. In a note issued on Friday by Moody's downgraded Pakistan's sovereign credit rating its lowest level ever. Pakistan's current account in May showed a deficit of $3.8 billion. Remittances from abroad that provided support to the current account until recently are tapering off, Moody's said.
Weak government finances, structural inflationary pressures and domestic political uncertainties are adding to Pakistan's external vulnerabilities and debt sustainability, thereby compounding the downward pressure on sovereign creditworthiness. Moody's said the downgrade was also prompted by an upcoming repayment of $7.5 billion to the International Monetary Fund. The principle and interest are due in 2012, 2013, 2014 and 2015. The country's dwindling level of official foreign-exchange reserves has also raised the probability of a default over the next year or two, Moody's added. -Online
|
|