ISLAMABAD, Jun 25 (APP): Prime Minister Imran Khan Thursday pointed out that Pakistan’s economy had been improving prior to the coronavirus pandemic, duly recognized by international credit rating agencies, in addition to the surging exports
at a fast pace.
Speaking on the budget in the National Assembly, he said exports of Pakistan had been rising, on month-on-month basis, at the fastest rate early this year and added international agencies had rated Pakistan at B3, which was recognition of the country’s improving economy at that time.
He said the lockdown had negative repercussions for the economy in Pakistan, while strict lockdown imposed by India, had an adverse effect on its economy.
He pointed out that rate of coronavirus infections was still higher in India as compared to Pakistan and people in cities like Mumbai, were forced to wait outside hospitals to get treatment against coronavirus.
The PM said in India, 34 percent of the population had gone below the poverty line in the wake of lockdown. Millions of people were out on the roads to find work and to make ends meet when measures for a lockdown were taken, he added.
He said due to coronavirus, the world was in recession and countries suffered losses of $ 12 trillion; many industries were closed down permanently; services sector particularly tourism and airline industry suffered immense losses and the world still did not know how long the economic crisis would continue.
He said the Pakistan Tehreek-i-Insaf government inherited record level of current account deficit as previously exports were stagnant at $ 20 billion while imports going upto $ 60 billion.
The high current account deficit showed that the country’s economy was sick, he noted.
He further said the deficit put pressure on the dollar exchange rate which in turn made imports expensive, and that led to higher inflation which adversely impacted prices of utilities and commodities and increased poverty.
The total debt and liabilities went up from Rs 16000 billion to Rs 30000 billion during the 10-year tenures of previous governments and PTI government in its the first year, spent half of the collected revenue on paying off installments of loans taken in the past, he explained.
Imran said the PTI government did not borrow from the State Bank while in the past Rs six trillion were borrowed.
He said his government inherited circular debt of Rs 1.2 trillion and expensive electricity and gas contracts. The gas purchase contract was for 15 years while now gas was available in the world at much reduced price, he added.
He said the Opposition should be asked why it wreak havoc with country’s economy.
The Prime Minister said he led the austerity drive to set example for others, cut expenditure of the PM House and reduced to half its staff of 534. “We can further reduce the staff but we don’t want to put people out of work.”
The profile of government borrowing was changed as previously 70 percent of its borrowing was expensive and for short term but now 76 percent of the loans were taken on a long term basis, he added.
He said National Disaster Management Authority was given all the powers and the government would meet all its expenses to tackle locust which potentially could be very dangerous for the country.
He said National Command and Operation Center was regularly receiving reports from cities, towns and different parts of the country, monitoring all hotspots of coronavirus and cordoning off areas with high incidence of the disease.
In order to relieve pressure from the civil administration, newly formed Tiger Force was given the task to enforce the standard operating procedures for coronavirus, he said. “If we can spend one month with care, we can save ourselves from the ill-effects of coronavirus.”
He said Rs 30 billion were allocated so that people could get financing to build affordable houses at subsidized interest rates.
