On Saturday, PML-N President Shehbaz Sharif expressed serious concern over the recent depreciation of the rupee, saying that the government and the State Bank failed miserably in managing the economy.
In a statement, Shehbaz said government policy would further increase the economic burden on the poor in the current crisis, adding that destroying the economy would lead to more destruction than the coronavirus. He said that the reduction of the interest rate by the State Bank twice a week is evidence of the failure of its policy.
Shahbaz, who is also the opposition leader in the National Assembly, said he had already warned about the devastating effects of the policy, but the State Bank first cut the interest rate from 13.25 percent to 12.50 percent, and then from 12.5 percent to 11 percent.
This showed that two cuts in interest rates were not enough, he said, adding that the rate should drop to at least 9 percent. Shahbaz noted that the current account deficit was almost zero due to lower imports and oil prices.
The PML-N president also mentioned that they had warned of the threat that “hot money” represents, adding that addiction to hot money and government incompetence added fuel to the fire. The government, he said, was supposed to help people, but instead they tightened a loop around his neck.
Shahbaz said the government will have to make the right decisions, showing seriousness and wisdom, because the wrong decisions made at the wrong time can have devastating consequences.