ISLAMABAD                -            The country’s economic direction is not suitable which should be corrected immediately otherwise it can cause great harm in the near future, a business leader said Sunday.

Revenue increase by seventeen percent and enhanced forex reserves amid economic slowdown is surprising and indicates that country is not heading in the right direction, said ICCI former President Shahid Rasheed Butt. He said that revenue is increasing despite sluggish growth as unhappy masses and the dejected business community has been targeted by revenue officials while little has been done to tax the influential untaxed, he added.

Shahid Rasheed Butt said that the ambitious revenue target of the IMF could not be met by FBR no matter what they do, as it will require a miracle.

He said that exports in January recorded a fall of 3.4 percent to 1.96 billion dollars due to economic situation, blocked refunds, political and economic instability, energy prices and other issues.

At one hand, we see exports falling while on the other hand forex reserves are gaining strength for which the flawed policies are responsible. The method adopted to attract hot money by offering high interest is not sustainable and very risky for the economy, he observed.

The present risky policy of attracting hot money will boost forex reserves to 20 billion dollars while foreign investment in T-bills will jump to five billion dollars during the current year but at a cost.

Attracting foreign funds by high interest rates can be repatriated any time that will unleash another crisis in Pakistan therefore many economic exports are warning against this policy, he warned.