The need for a covenant economy – Mashriq TV
In the interbank market, the US dollar rose to a new high of over Rs 193. The dollar is expected to appreciate further. One of the reasons for the sharp depreciation of the rupee against the dollar is the country’s high import bill. The rise in the exchange rate has shaken the economy. The trade deficit reached 39 39 billion in July-April. The steady rise in the dollar is due to the ongoing economic crisis in the country and especially the low foreign exchange reserves and political uncertainty. The condition that the government change the fuel and electricity subsidies to reinstate the loan program from the International Monetary Fund further erodes the confidence of stakeholders. The daily depreciation of the local currency causes a serious panic. This is because investors are in a state of uncertainty. Rising inflation and depreciation of the local currency mean a decline in the purchasing power of consumers as traders seek higher returns to save their investments. The government has changed at a time when the economic situation was getting out of hand. It is said that a government that makes economic decisions has left while new ones are coming The government is still not able to get out of political turmoil and decisions. The economy is getting out of control but the government is a victim of political expediency and is reluctant to take such decisions as are necessary to manage the economy. It would be better to eliminate subsidies on petroleum products that have been discontinued and focus on controlling inflation by making other necessary decisions. With the abolition of subsidies on petroleum products, if a scheme is introduced for low-income petrol consumers, the lower class will be able to benefit from the current subsidy, which is a heavy burden on the national exchequer on a daily basis. The undeserving class is also taking advantage of the subsidy. The present government will be able to make decisions only when the government comes out of the political crisis. The government is entangled in politics till then.
There are dual political and economic problems and economic challenges. Although there is no immediate prospect of improvement in political affairs, there is hope for improvement at any time in political affairs. Let the government and the opposition agree on the economic charter through some compromise. If efforts are made to create favorable conditions for the benefit of the country and the nation, it is possible that by the time these lines are published, the government policy may have come to the fore, which is expected to be announced. No one has the cane and it will not be possible to overcome the economic problems all of a sudden. It is inevitable for us to focus on the economic problems as well as the current political situation in the country. Addition and reduction of economic problems is a difficult thing. More than that What’s shocking is that the country’s economy is falling sharply. The dollar has crossed the last line. The stock exchange has been on a downward trend in recent days. In a situation where the country’s economy has reached this level, the government needs to take immediate precautionary measures. It is true that the major responsibility for the economic downturn lies in It also applies to the outgoing government, but it is not the time for accountability and blame, but the time for urgent action to get the country out of the economic crisis. The performance of the finance minister is also not remarkable. Like his predecessors, he has been sitting up and counting the failures of the former government even though it is not a requirement of his position. The government should do nothing but work in this extraordinary situation Take urgent steps to save the economy. The most important part of the government’s interest should be to save the economy at this time, to which the future of the nation depends, and to find a solution to the political crisis. The way out of the crisis will be smooth. The government needs to do this in a hurry. Delays can complicate the situation which cannot be tolerated.