APS News Agency Associated Press Service
ISLAMABAD/KARACHI:(APS)Chairman Standing Committee Finance Senator Saleem Mandviwalla has said that Pakistan has had to adopt unconventional fiscal and monitory policy measure since the Fiscal and monetary policies are no longer restricted to their traditional roles.
He was addressing a three days international conference on China-Pakistan economic corridor in urumqi china.
He said that Global financial crisis and the sub-sequent recession, particularly in the developed world, have however elicited uncontroversial changes in the design and implementation of momentary as well as fiscal policies.
Saleem mandviwalla emphasized that Monetary authorities in the advanced economies responded by adopting a contractionary stance and aggressively cutting policy rates and adopting several other unconventional measures aimed at providing stimulus to the economy directly.
He vows that Fiscal and monetary policies are no longer restricted to their traditional roles.We have had to adopt unconventional fiscal and monitory policy measure.
He clarified that During the last five years Higher interest rates were not the major constraining reason for the private sector credit off-take but Two fundamental factors responsible for the lackluster increase on credit demand were: persistence of energy shortages and deterioration of law and order situation.
Mandviwalla said that The deterioration of law and order situation is a big barrier and erodes investors’ confidence and energy shortages hamper industrial growth.
He asked that A long term and sustainable solution of these problems should top the economic agenda of the government.