ISLAMABAD, Apr 16 (APP):The country’s current account deficit is expected to cross $20 billion mark by end of current fiscal year as against the claims of only $1 billion made by the PTI leaders.
According to sources from the cabinet in waiting, the actual figure of the CAD in 2018 was $19 billion.
With respect to the foreign exchange reserves, the sources also termed the claims of leaving $22 billion forex reserves by the previous regime as misleading saying that actual numbers of the reserves with the central bank were $11 billion. While in 2018, the State Bank of Pakistan (SBP) had foreign exchange reserves of $10 billion.
Similarly, the sources also rejected the PTI’s claims of collecting taxes worth of Rs 6.1 trillion in 2022, saying that the tax to GDP ratio has decreased significantly from 11.1% in 2018 to 9.1% in 2022.
In nominal, non inflation-adjusted rupee terms the numbers are: Rs 3842 billion in 2018 and Rs 5800 billion in 2022.
In all 3 years PTI’s tax to GDP was less than what PMLN was able to achieve. During PTI’s first year (FY2019), Pakistan’s tax revenue shrank in minimal terms for the first time in the country’s history.
Foreign remittances, the sources added, stood at $20 billion in 2018 while by end of current fiscal year (FY22) the remittances are expected to be around $29 billion.
“Again the remittance were stagnant during PTI’s first year and increase only when travel outside Pakistan as restricted and 2.2 million Pakistanis who go for Umrah annually didn’t go and the money came to Pakistan as remittance,” the sources added.
The country’s exports during 2018 stood at $24.8 billion which are likely to be increased to $29.5 billion by end of current fiscal year. The sources also rejected the PTI’s claims of achieving the IT exports target of $5 billion.
The sources explained that total volume of the country’s economy is only $296 billion against $315 billion in 2018.
They said 6.1% GDP growth was achieved in 2018 under PMLN, the highest in the last 17 years
In 2020, Pakistan’s economy shrank by 1%. It was the first time GDP had contracted since 1952.
With respect to debt to GDP ratio, the sources said that the ratio has increased from 63.7% in 2018 to 71.8% in 2021.
With respect to the PTI government’s tree plantation initiative, the sources added that only 240 million trees were planted under Billion Tree Tsunami Project. No hospitals, universities or electricity projects were installed in 3.5 years.
Similarly, Sehat Card was introduced by PMLN for which Imran Khan has falsely claimed credit. Ehsaas is another example of only rebranding. It was BISP which was started during PPP government and expanded during PMLN govt, and was only renamed to Ehsaas by PTI.
The sources also claimed that record increase has been witnessed in debt during PTI’s 4 years mainly due to record fiscal deficits of Rs 16 trillion in 4 years at an average of Rs 4 trillion a year. In comparison, average fiscal deficit was only Rs. 1.6 trillion a year during PMLN’s tenure. External debt is only 35% of total public debt. Impact of devaluation is less than Rs 2 trillion.
