PTI govt's 'tough' economic decision on assembly floor

[RoadRunner401]

ISLAMABAD: Special Advisor to Prime Minister Imran Khan on Finance Dr Abdul Hafeez Sheikh on Wednesday defended the federal government’s economic policies and belt-tightening on the floor of the National Assembly.

Referring to his career in finance, the special advisor said he has been a part of the country’s administration on multiple occasions but had not seen any ruling party take tough economic decisions the way the Pakistan Tehreek-e-Insaf government has done in the past 18 months.

Economic turmoil

Sheikh emphasised the importance of unstable political situation in the country playing a part in destablising economy. “Unfortunately no premier has completed a five-year term,” he highlighted. “In 72 years, we have failed to convince the world to invest in Pakistan.”

“We have failed to establish a tax collection system in 72 years,” he told the NA. Sheikh said Pakistan depended on other countries to boost its finances and stressed on contemplating why the growth rate remained unstable.

“The economy is directly affecting the masses even though the government is working on maintaining financial stability.”

Sheikh added that invoking the past was discouraged but the debt situation inherited by the incumbent government had to be acknowledged. “We had to repay Rs5,000 billion in loans in FY2019-20.

Of loans and payments

Reflecting on the incumbent government’s measures to secure loans, Sheikh lamented the criticism over the International Monetary Fund (IMF) bailout package. He reminded the MPs of previous governments knocking on the lending body’s door. “Nobody goes to the IMF out of choice. We are compelled due the nature of our economy.”

Sheikh said the fund was established to help pull developing countries out of economic turmoil. “Our economic situation was so bad that nobody was ready to grant us loans,” he recalled.

He said the PTI government aimed to save the country from defaulting on payments.

Explaining the loans, Sheikh said the friendly nations helped with $8 billion in loan and another $3.2 billion in deferred payments on oil imports. He said the IMF bailout paved way for increased support from the World Bank and Asian Development Bank.

Sheikh also regretted criticism faced by State Bank of Pakistan Governor Dr Reza Baqir. “We should be proud of Baqir and his accomplishments. IMF hires on merit not on source.”

Exports

Highlighting the depleting foreign reserves, the de-facto finance minister said: “We don’t have dollars – our loans and expenditure is in dollars.” He added that the only way to escape the debt trap is by strengthening exports.

Sheikh claimed growth in exports during the past five years was ‘zero’ and accused the previous government of keeping the national currency at a stable value in a bid to boost imports. “Even toothpaste was being imported,” he lamented. “I don’t mean to criticise,” he continued. “But if we want economic growth, then the country needs to prioritise exports.”

Expanding on the steps taken to boost exports, Sheikh claimed the government had decided against imposing taxes on exporters and was offering electricity and gas on cheaper rates.

Stablising measures

Elaborating on the incumbent government’s economic measures, Sheikh said expenditures were reduced. “The army leadership backed our decision to reduce the defence budget,” he claimed. “Salaries of cabinet members, judges and secretaries also faced cuts.”

He said the government decided against taking loans from the central bank but has invested in programmes uplift the poor sector of the society.

He claimed that the measures resulted in current account deficit falling from $20 billion to $8 billion. Sheikh said the IMF target had been achieved while the WB has listed Pakistan as one of the top ten countries with improved ease of doing business.

This is a developing story and will be updated accordingly.


Read more: Business , Dr Abdul Hafeez Sheikh , economy

 

[A.A. Khan]

Jhoota liar IMF dalaal Hafeez Shaikh, IMF has directed to keep their pet beggar project Benazir income support fund for the lower class while squeeze the purchasing power of the rest from lower middle class onwards.
while make cuts from defense budget as well as for the provinces.

This Govt. has not received any huge support from WorldBank and ADB this dalaal is talking about. They have a huge bureaucracy as well and their financing takes hell lot of time. Hiring of Hafeez Shaikh was due to this Govt.s choice to go to IMF.

Hahaha how IMF and our corrupt govt. mafia brought life full circle. Its 2011 again when this IMF hitman Hafeez Shaikh representing Peoples Party was barking in the parliament under negotiation with IMF a tranche of $few 100 million by IMF. Borrowing more IMF loan to service previous loans and continue to run govt. day to day function, Food inflation and inflation over 18%, Foreign Direct Investment down to zero, industrial units shutting down and their put put in the negative , textile mill owners shifting to Bangladesh and other countries , surge in debt[]ofpower companies and high power prices alongwith loadshedding, people shifting their money overseas, Pakistan economy in doldrums.

Imran Khan does a jalsa on 30 Oct 2011, instills hope and thanks to Finance Min. Senator Abdul Hafeez Shaikh and Zardari wipes Peoples Party of the Punjab electoral map in the next elections of 2013.

In 2018 election becomes dominant party and in 2020 IMF dalaal Abdul Hafeez Shaikh is again barking for another master Imran Khan who had PROMISED he'll do reforms, transformpolitics,will commit suicide than going to IMF, rofl. Same situation high food inflation, powerprices rising, Economic and political sovereignty being challenged, investor confidence down completelyin fear of how IMF is going to rape Pakistan while its agents or hitmen Reza Baqir (credited with breaking the back of Egypt ecoonomy) and IMF's trusted pimp Hafeez Shaikh take more loans to return the interest of the previosu loans while keeping Pakistan's economy in an arrested state while middle class people start selling themselves for half

 

[Cent4]

Jhoota liar IMF dalaal Hafeez Shaikh, IMF has directed to keep their pet beggar project Benazir income support fund for the lower class while squeeze the purchasing power of the rest from lower middle class onwards.
while make cuts from defense budget as well as for the provinces.

This Govt. has not received any huge support from WorldBank and ADB this dalaal is talking about. They have a huge bureaucracy as well and their financing takes hell lot of time. Hiring of Hafeez Shaikh was due to this Govt.s choice to go to IMF.

Hahaha how IMF and our corrupt govt. mafia brought life full circle. Its 2011 again when this IMF hitman Hafeez Shaikh representing Peoples Party was barking in the parliament under negotiation with IMF a tranche of $few 100 million by IMF. Borrowing more IMF loan to service previous loans and continue to run govt. day to day function, Food inflation and inflation over 18%, Foreign Direct Investment down to zero, industrial units shutting down and their put put in the negative , textile mill owners shifting to Bangladesh and other countries , surge in debt[]ofpower companies and high power prices alongwith loadshedding, people shifting their money overseas, Pakistan economy in doldrums.

Imran Khan does a jalsa on 30 Oct 2011, instills hope and thanks to Finance Min. Senator Abdul Hafeez Shaikh and Zardari wipes Peoples Party of the Punjab electoral map in the next elections of 2013.

In 2018 election becomes dominant party and in 2020 IMF dalaal Abdul Hafeez Shaikh is again barking for another master Imran Khan who had PROMISED he'll do reforms, transformpolitics,will commit suicide than going to IMF, rofl. Same situation high food inflation, powerprices rising, Economic and political sovereignty being challenged, investor confidence down completelyin fear of how IMF is going to rape Pakistan while its agents or hitmen Reza Baqir (credited with breaking the back of Egypt ecoonomy) and IMF's trusted pimp Hafeez Shaikh take more loans to return the interest of the previosu loans while keeping Pakistan's economy in an arrested state while middle class people start selling themselves for half

Yes of course blame the person who is trying to fix the issue. Ignore the facts why we are in this situation and don’t provide any viable solution on how to fix the issue.

 

[A.A. Khan]

Yes of course blame the person who is trying to fix the issue. Ignore the facts why we are in this situation and don’t provide any viable solution on how to fix the issue.

 

[PakSword]

Economic situation is really bad.. I mean extremely bad.

There's not much this or any other government can do to be honest.

I know that majority of the blame should go to previous governments, but those who helped the previous governments come to power should also be blamed. Economy could have been saved in 2013, it is extremely difficult, if not impossible, to save it now.

On top of that PTI doesn't have a clear majority and has to give in to the demands of MQM and Q-League. Courts are also playing their part to stop any good decisions taken by this government.

Government can't fire bureaucracy and bring people of its choice to handle institutions, can't sell loss making assets, can't confiscate properties of the crooks, and can't do shit when it wants. Imran Khan should have invited N-league and PPP to form government in the center. But then situation would have been worst although I don't know if anything more worst than the current situation is really possible.

Hafeez Shaikh is an IMF guy, but we don't have a choice. Those who are saying that we should have resisted IMF's conditions can't come up with any ideas that could have saved the economy without IMF's help. Our friends helped us to a limit, rest could only be managed with financial packages with conditions attached. Someone has rightly said, if you don't have the strength to stop a rapist, start enjoying the rape.