Finance adviser paints rosy picture of economy

ISLAMABAD:

Adviser to the Prime Minister on Finance Dr Abdul Hafeez Sheikh has wrapped up the economic performance of the government before the federal cabinet, saying the fiscal and primary deficit were lower than expected, central bank’s reserves increased and the current account deficit was slashed from $20 billion to $3 billion in two years.

While giving a rundown of the Pakistan Tehreek-e-Insaf (PTI) government’s two-year economic performance, the PM’s adviser said that the fiscal deficit post-Covid was expected at 9.1% but it was recorded at 8.1% and the primary deficit expected at 3.1%, was recorded at 1.8% – “the lower the primary deficit, the better”.

Sheikh said that the current account deficit was brought down from $20 billion to only $3 billion while the reserves of State Bank of Pakistan had increased from $8.5 billion to $12.5 billion.

Briefing the media about the cabinet meeting, chaired by Prime Minister Imran Khan, Federal Minister for Information and Broadcasting Senator Shibli Faraz shared details of Sheikh’s briefing and touched upon other important issues discussed in the cabinet.

The information minister said that Sheikh informed the cabinet that the policy of encouraging exports and discouraging unnecessary imports has paid rich dividends. Under the Ehsaas programme, the minister said, financial assistance was given to some 15 million families in a transparent manner and subsidy was given to the Utility Stores Corporation to ensure supply of daily use items at affordable prices.

Appreciating the government’s ‘historic’ package for the construction industry, Faraz said that the resumption of construction activities would create jobs and provide housing facilities to the poor. Under the policy, he said, the poor people would be given loans on minimum mark-up ratio and the government would also give subsidy to them in the purchase of housing units.

Faraz said that the government also gave relaxation on taxes to the builders to encourage investment in housing units, adding that the economic wheel was in motion and more tax revenue was collected than the target.

On subsidies regarding electricity, gas and Ehsaas programme, Faraz said that a recent Bloomberg report ranked the Pakistan Stock Exchange second in the world.

He said exports had increased and the stock exchange showed growth, which was an indication of economic stability. Exports reached $2 billion mark in the month of July during the current year against $1.2 billion in the corresponding period last year, he said, adding that the sales of cement also saw an increase.

The minister expressed that the international institutions’ better ratings for Pakistan’s economy was a sign of economic stability. “The government had to take difficult decisions and now hard times had almost passed and the nation would soon benefit from good times.”

The way the government dealt with the coronavirus pandemic, he said, was being appreciated all over the world. Those who had created hype for a stricter lockdown belonged to the elite class, he said, who could not feel the pain and sufferings of the poor and marginalised people.

“With the blessings of Allah Almighty, the pandemic caused less damage to Pakistan than the developed countries,” he said. The minister said the cabinet was informed that the process of scrutiny of the licences of pilots would be completed next month.

He said that the cabinet decided to celebrate August 14 with a renewed pledge that the country should not be run the way it was run during the past four decades.

Also, he said, the prime minister was informed that payments worth Rs891 million were made to the media houses whereas the remaining dues would be cleared at the earliest.

Pak-Saudi ties

Commenting on Pak-Saudi ties, the information minister said that Pakistan has always valued its relationship with Saudi Arabia and looking at “routine matters with suspicion is not in the country’s interest”.

The minister dispelled the speculations that Islamabad’s relations with Riyadh have deteriorated lately. Responding to a question on Saudi loan payment of $1 billion, Faraz said the loans are meant to be returned and there is nothing unusual about it.

NAB-Maryam fiasco

Commenting on NAB-Maryam fiasco, Faraz said that instead of regretting the incident and giving answers to the bureau, Maryam held a press conference. Referring to Maryam’s stance that she did not hold any property in Pakistan and abroad, Faraz questioned how come she has no property in her name.

Faraz said that Maryam was summoned by NAB to answer questions regarding receiving 200 acres of what was supposed to be government land in Raiwind but she went to the bureau’s office with an entourage. He said that NAB also summoned Punjab Chief Minister Usman Buzdar several times but he never went there with a crowd.

On a sarcastic note, he “congratulated” the PML-N’s media wing N for putting up “a great drama” as the discussion was diverted from the real issue to other issues. Today, “Maryam Nawaz group” held a press conference, he said, tomorrow “Shehbaz Sharif group” will hold a press briefing.

Censuring the PML-N leaders for trying to divert attention from the real issues of the country, Faraz said that all the people involved in looting the country would be held accountable.