Pakistan Tehreek-e-Insaf blames PDM government for 'economic catastrophe'

Islamabad [Pakistan], November 12 : The Pakistan Tehreek-e-Insaf (PTI) has issued a white paper blaming the Pakistan Democratic Movement (PDM) coalition government for the economic catastrophe in the country Pakistan-based Dawn reported.

The Imran Khan-led party said that the PTI-led government had put the economy on the path of rapid growth despite the COVID-19 pandemic. PTI's statement comes at a time when International Monetary Fund (IMF) has been reviewing the second tranche of USD 710 million for Pakistan, Dawn reported.

The White Paper stated, "[The] PTI government put the fast-dwindling economy of the country on the path of rapid growth despite Covid-19 pandemic that played havoc globally; however, the PDM government imposed through regime change conspiracy, reversed all the hard economic gains of Imran Khan-led government, inflicting more economic catastrophe to the country than the cumulative damage caused by floods, earthquakes and pandemic."

According to the white paper, the economic indicators showed that PTI took over the government when the economy was on the brink of collapse. It said that Pakistani rupees at that time were overvalued by 23 per cent against the US dollars, Dawn reported.

The White Paper stated, "The economic indicators clearly showed that when the PTI took over the government in August 2018, the economy was on the brink of collapse, as current account deficit (CAD) for FY2018 stood at USD 19.2 billion, SBP reserves were recorded at USD 9.4bn and USD 32bn loan payments were needed immediate funding. Moreover, the rupee was over-valued by 23 per cent against the USD, exports declined by USD 10bn over five years, while imports increased by USD 23bn, creating a hole of USD 33bn in our reserves, besides the fiscal deficit was 7.6pc of the GDP."

The White Paper said PML-N left a mess in the energy sector by overbuilding the power supply through imported fuel plants with dollar-linked capacity payments. It said that the PTI government had inherited a circular debt of PKR 1.6 trillion, and annual capacity payments were PKR 450 billion in FY18, increasing to PKR 1.4 trillion in FY23, Dawn reported.

The White Paper stated, "...Pakistan approached the IMF that attached tough conditions to increase discount rate by 325bps, electricity and gas tariffs and fuel prices. The PTI government reduced fiscal deficit to 5.5 per cent of GDP by increasing taxes from PKR 3.7tr to PKR 5.5tr in a single year," it stated.

According to the White Paper, the PTI government was able to keep CPI at 12.7 per cent and SPI at 14 per cent in March 2022, despite facing the global commodity super cycle which resulted in price of petroleum products reaching from USD 70/barrel to USD 115/ barrel, edible oil from USD 780/tonne to USD 1,500/tonne and coal from USD 80 per tonne to USD 280 per tonne.

It said that the additional debt accumulated to almost PKR 20 tr in comparison to PKR 18.3tr by PTI in 40 months, despite the COVID-19 pandemic, according to Dawn report.

Meanwhile, the Pakistan Tehreek-e-Insaf (PTI) has cancelled its public gathering in Karachi The rally scheduled for Sunday was cancelled after the district administration denied permission, ARY News reported.

PTI Karachi Chapter said in a statement that they had approached relevant authorities, including the Sindh chief minister and Commissioner Karachi, to seek permission to hold public gatherings in the metropolis.

The PTI said the district administration rejected the request, lambasting the authorities' attitude towards the Imran Khan-led party. The statement further said, "The PTI is being denied a level-playing field."

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