Shehbaz scorns govt, State Bank over interest rate, rupee slide
March 28, 2020 05:13 PM
PML-N president Shehbaz Sharif on Saturday expressed his serious concerns over the latest depreciation of rupee and said the government and the State Bank had failed miserably in managing the economy.
In a statement, Shehbaz said the government policy will further increase the economic burden on the poor in the existing crisis, adding that the ruining of economy would cause more destruction than the coronavirus.
He said the cut in interest rate by the State Bank twice in a week was a proof of its policy failure.
Shehbaz, who is also the Leader of Opposition in the National Assembly, said they had already warned about the policy’s destructive consequences, but the State Bank first slashed the interest rate from 13.25 percent to 12.50 percent and later from 12.5 percent to 11 percent.
It showed that the two cuts in the interest rate were not enough, he said, adding that the rate should be reduced to at least 9 percent.
Shehbaz noted that the current account deficit was almost zero because of the reduction in imports and oil prices.
The PML-N president also mentioned that they had warned about the threat posed by the “hot money”, adding that the dependence on the hot money and the government’s incompetence had added fuel to the fire.
The government, he said, was supposed to provide relief to the people but instead it had been tightening the noose around their neck.
Shehbaz said the government would have to make the right decisions showing seriousness and wisdom, as the wrong decisions taken at the wrong time could trigger devastating consequences.