Convener FPCCI Central Standing Committee on Insurance Dr Murtaza Mughal on Friday said the demand of the IMF and World Bank to reduce circular debt to zero in one year should be rejected as it is contrary to the ground realities.
The demand of the lenders is not implementable as it will push the country back to the stone age, he said.
Talking to present and former President of RCCI Saboor Malik and Nasir Mirza, he said that it took decades of neglect to accumulate circular debt which can be brought down to zero in a gradual manner otherwise it will hit masses and productive sector badly.
Dr. Murtaza Mughal said that the proposal to hike power tariff by Rs6 per unit is unacceptable as a failure in undertaking reforms will leave the government with only option to hike power tariff by Rs133 per unit.
Accepting such proposals will shrink GDP, stoke unprecedented inflation and leave millions unemployed.
He said that faulty power purchase agreements were signed by former rulers, therefore, masses should not be punished for their mismanagement as the capacity payments of IPPs will surpass one trillion rupees in a few years.
He noted that former rulers as well as businessmen were involved in controversial power purchase agreements but government has not taken any meaningful action against the.
Dr. Mughal who is also President of Pakistan Economy Watch noted that there are some signs of economic stability which has prompted the central bank to mull hike in the interest rates which should be noticed.
The government has forecasted two percent increase in the GDP banking on the construction sector but the cement mafia has created an artificial shortage of the cement bring construction projects to a standstill and snatching jobs form millions of labourers.
At the occasion, Saboor Malik and Nasir Mirza said that cheap and uninterrupted energy is imperative for the national development which must be ensured.