Government has realised negative impact of subsidies - AsiaNet-Pakistan

Government has realised negative impact of subsidies

November 16, 2020 | | Share:

Islamabad, November 16, 2020 (PPI-OT): The Pakistan Economy Watch (PEW) on Monday lauded Prime Minister Imran Khan for taking note of the wastage of precious resources in the name of subsidy. The government is doling out an annual subsidy of Rs 4 trillion which is not affordable therefore this practice should be stopped without delay, it said.

How come Pakistan afford to waste 4.5 percent of its GDP to please influential which is not possible for many developed nations, said Chairman Pakistan Economy Watch Brig. (retd) Aslam Khan. He said that many countries have the subsidy regimes to benefit masses but we have a very flawed system which benefits influential involved in energy, industry and agriculture sector while masses get a very insignificant share of the subsidies.

Aslam Khan said that subsidies are also used to keep inefficient and corrupt enterprises running on the cost of poor which include PIA, Railways and Pakistan Steel Mills etc. Subsidies add to the money and influence of the superior businessmen who then use their power to skin masses as evident from the continued food crisis, he observed.

The mafia is plundering masses while the regulators are weak enough to play the role of silent spectators, therefore, the government must spring into action after realising the wastage of scarce resources. He noted that all of the successful countries have reversed unnecessary subsidies and subjected their commodities and utilities to market dynamics resulting in price stability and an end to shortages and hoarding.

For more information, contact:
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

The post Government has realised negative impact of subsidies appeared first on Business News Pakistan.

Category: English, General Business News