Elections before economic stabilisation will be a disaster: Kaiser Bengali

Meanwhile, Hafiz Pasha says only way for govt to steer out of the crisis is to talk with IMF as soon as possible

Aaj Shahzeb Khanzada Kay Sath
Business Desk
Economist Dr Kaiser Bengali. Photo — Engro Energy website
Economist Dr Kaiser Bengali. Photo — Engro Energy website 

  • Reduction of non-development expenditures is the only way to stabilise inflation, Kaiser Bengali says.
  • There is uncertainty about govt’s stance on economic crisis, says Hafeez Pasha.
  • Pasha adds talks with IMF is the only way to control economic crisis.

Amid the ongoing economic crisis and confusion over the tenure of the current government, economic analyst Dr Kaiser Bengali Wednesday warned that early elections before stabilisation of the economy would be a "disaster" for the country.

Taking to Twitter, Bengali wrote: “Early elections, before inflation and dollar rates are stabilised, will be a disaster.”

He further added that the early polls would increase already high inflation, therefore reduction in non-development expenditures is the "only way to stabilise inflation".

Bengali echoed the opinion held by the PML-N leadership that the economic crisis should be the priority of the ruling coalition and tough decisions needed in this regard.

Meanwhile, former finance minister Hafeez Pasha said that there was uncertainty about the government’s stance on the country’s economic crisis as Finance Minister Miftah Ismail's statement was contradicting the strategy coming from London.

Speaking on Geo News programme Aaj Shahzeb Khanzada Kay Saath, he said“Therefore, the only way for the government to steer out of the crisis is to talk with IMF as soon as possible, otherwise the value of the rupee could depreciate further."

A day earlier, the Pakistani rupee dropped to an all-time low of Rs190.02 against the US dollar in the interbank market adding pressure on the government to control the uncertain situation.

With investors losing confidence in the commodity markets of Pakistan, economists and financial pundits stress the need for an immediate revival of the IMF programme. 

Pasha further stated that the government should present the next budget a bit early and introduce taxation reforms in it, and also try to reduce subsidies and grant strictly.

“If the government presents the budget for the fiscal year 2022-23 in the last week of May, it would create confidence in the market,” he said, adding that the government can try to stabilise the economy after presenting the budget, and can then move towards elections.”