PTI’s white paper ‘exposes’ PML-N’s ‘economic catastrophe'

The Pakistan Tehreek-e-Insaf (PTI) released a whitepaper on Sunday, shedding light on the economic “catastrophe” inflicted by the Pakistan Muslim League-Nawaz (PML-N) government during its tenure from 2013 to 2018, as well as the PDM coalition government ruling from April 2022 to August 2023.

According to the white paper, the former ruling party asserted that economic indicators clearly indicated a looming collapse of the economy when PTI assumed government control in August 2018.

The document highlighted alarming figures, revealing that the current account deficit (CAD) for the fiscal year 2018 reached $19.2 billion, State Bank of Pakistan (SBP) reserves were recorded at a mere $9.4 billion, and immediate funding of $32 billion was required for loan payments.

The data underscored the magnitude of the economic challenges inherited by the PTI government upon assuming power.

Moreover, the party claimed, the rupee was over-valued by 23 per cent against USD, exports declined by $10 billion over five years while imports increased by $23 billion, creating a hole of $33 billion in the reserves, the fiscal deficit was 7.6 per cent of the GDP, adding there were no investments in the agriculture and industrial sectors.

In showcasing its own performance, PTI asserted that the economic indicators spoke volumes about its government’s performance as GDP growth jumped from 5.74 per cent in 2020-21 to 6.1 per cent in 2021-22, agriculture sector growth stood at 4.4 per cent, LSM sector growth 11.7 per cent, overall industrial growth at 7.2 per cent and services sector growth 6.2 per cent.

Similarly, the paper revealed that exports remained at $32 billion, remittances were $31 billion and tax collection was Rs6.15 trillion, which PTI said was the highest ever in the history of the country. The party claimed that it created 5.5 million new jobs in three years.

The paper claimed that PTI reduced CAD from $19.2 in 2018 to $17.3 in 2022, export of goods from $24.8 to $32.5, and total exports as a per cent of GDP from $8.6 to $9.1 in the same period.

Moreover, it said, PTI achieved 6 per cent growth in the 3rd year of government and PML-N achieved it in the 5th year. Besides, it said, PTI is the only government since 2007 which achieved 6 per cent growth in two consecutive years.

PTI maintained that the agriculture sector growth of 4.4 per cent in FY22 is the highest posted since FY05, as during the PPP government from 2009 to 2013, agriculture growth was 2.4 per cent and it was 2.2 per cent during the PML-N government from 2014 to 2018.

Similarly, it continued, the LSM growth of 11.5 per cent in FY21 and 11.7 per cent in FY22 are the highest recorded since FY 2005 and growth of 6.2 per cent in the services sector (transport, retail, banks, health & education etc) is the highest growth since FY 2007.The white paper showed that IT exports witnessed a record increase from $1 billion in FY18 to $ 2.5 billion in FY 2022.

It was revealed that exports and remittances recorded a historic upsurge as exports rose to $ 32 billion in 2022 for the first time in our history from $24.8 billion in 2018 and remittances grew to $31 billion, which was $19.9 billion in 2018.

The paper pointed out that despite record-high commodity prices, CAD remained lower than in 2018. Meanwhile, the white paper shed light on the PDM government’s abysmal performance that devastated households and all business activity, leading to a sharp slowdown in growth and a rise in unemployment.

‘Floodgate of inflation’

PTI alleged that the PDM government opened a floodgate of inflation, which badly eroded the purchasing power of households, leading to a sharp increase in poverty rates. The lowest overall GDP growth of 0.5 per cent in 75 years spoke volumes of the pathetic economic policies of the “imposed government”.

Through the paper, PTI alleged that the PDM government ruined the fast-thriving economy, as annual inflation recorded the highest at 38 per cent, which was 12.2 per cent in the PTI government, while food inflation was 50 per cent in the PDM government, which was 14.8 per cent in PTI tenure.

The paper depicted that the PDM government broke all records of backbreaking inflation and unemployment by rendering over 2 million people jobless in the last 16 months, besides bringing 20 million below the poverty line.

During the PDM government, PTI said, remittances declined to $27 billion compared to $31.3 billion left by PTI, while exports dipped to $27.7 billion versus $31.7 billion in PTI last year, besides depleting foreign reserves alarmingly.

The whitepaper claimed that almost Rs20 trillion additional debt accumulated in 16 months versus Rs18.3 trillion by PTI in 40 months despite Covid. “Reckless spending and tax breaks for political bribery have led to the fastest accumulation of debt in Pakistan’s history,” it said.

The paper said that the GDP growth tanked to zero per cent under the PDM government, from 6 per cent under the PTI government, as IMF staff estimates growth of -0.5 per cent in FY23 compared to PDM estimates of 0.3 per cent.

It noted that LSM sector growth collapsed to -8 per cent under the PDM government in FY23, whereas under the PTI government, LSM grew at over 11 per cent for 2 consecutive years, besides exports declined 15 per cent, after record exports under PTI from $32.5 billion to $27.7 billion.

Moreover, it claimed, remittances posted a 14 per cent decline under PDM, after record growth under the PTI government from $31.3 billion to $27 billion. The white paper claimed that PKR weakened by Rs60 under the PTI government, whereas the rupee weakened by Rs100 during the 16-month PDM government.

“PTI government put the fast-dwindling economy of the country on the path of rapid growth despite the Covid-19 pandemic that played havoc globally,” it read.

However, it added, that the PDM government inflicted more economic catastrophe on the country than the accumulative damage caused by floods, earthquakes and pandemic.

The white paper revealed that the PML-N left behind a mess in the energy sector by overbuilding the power sector supply through imported fuel power plants which had dollar-linked capacity payments.

The circular debt PTI government inherited was Rs.1.6 trillion and annual capacity payments were Rs.450 billion in FY1-18, rising to Rs1.4 trillion in FY 22-23.

It said that despite facing the global commodity super cycle which pushed prices of imported items such as petroleum products from $70 per barrel to $115 per barrel, edible oil from $780 per ton to $1500 per ton and coal from $80/ton to $280/ton, PTI kept consumer price index at 12.7 per cent and sensitive price index at 14 per cent on March 22.