Economic policies.

Byline: Muhammad K Sufi - Islamabad

THIS is apropos the news 'Citibank Pakistan gives ringing endorsement to govt's economic policies' (Dec 10). True, some of the economic indicators are giving a positive outlook about the economy, and the international agencies such as the World Bank and Moody's, are also appreciating the government's efforts.

Coming to the endorsement of economic policies, by the managing director of a foreign bank, one gets the feeling that the government's policies are more favourable to the banking sector, and one does not have to look far for the reason: a hefty discount rate of 13.25 in short-term treasury bills, this is an increase by 5.75 since September last.

Furthermore, with such attractive discount rates, the foreign banks have heavily invested in government papers to the tune of Rs75...