”Economy is moving towards stability, confidence of investors is being restored”
Dr. Hafeez Shaikh sheds light on PTI government's economic performance.
Dr. Hafeez Sheikh said that when the incumbent government took over, the economy was on the brink of collapse.
The debt had increased up to Rs. 30,000 billion.
During such a crisis, the government introduced economic reforms and measures.
Defense expenditure was frozen, expenses of civilian government were brought down by Rs. 40 billion.
Slowly, the economy is on the road to stability and the lost confidence of investors is being restored, claims the government. Due to the revenue shortfall of FBR (Federal Board of Revenue), the government has moved to opt for a new strategy. According to it, the reliance on non-tax revenue collection has been increased, compensating for fiscal imbalance and to keep working.
Dr. Abdul Hafeez Shaikh, Adviser to PM on Finance, briefed the media on their updated strategy for economic stability. He said that the non-tax revenue collected would be amplified to Rs. 400 billion, reaching a figure of Rs. 1600 billion against an initially defined target of Rs. 1,200 billion in budget 2019-20.
”The economy was on the brink of collapse”
Dr. Hafeez Sheikh said that when the incumbent government took over, the economy was on the brink of collapse, however, now with contraction of trade deficit by 35 percent and a decrease in budget deficit by 36 percent in the first quarter (July to September) of the current fiscal year, it is moving towards stabilization.
He further added that the trade deficit will be reduced by $5.7 billion in the first 3 months. Also, the government did not take any borrowing from SBP (State Bank of Pakistan) also has not approved any supplementary grants. Revenue collection has also witnessed a 16% growth.
“We have implemented 20 out of 27 action plans of the Financial Action Task Force (FATF),” he said.
Hafeez Shaikh said that the debt had increased up to Rs. 30,000 billion and the current account deficit stood at the historic high with unstable exchange rates when PTI took over. The imports were increasing and the local exports were on a constant decline. During such a crisis, the government introduced economic reforms and measures.
As part of the strategy, defense expenditure was frozen, expenses of civilian government were brought down by Rs. 40 billion and also the expenses of PM office were decreased. The government also engaged in agreements with friends countries, raising foreign exchange reserves to $7 billion. 800,000 new taxpayers were also registered, bringing them in the compliance net.
What are your views on this? Share with us in the comments bar below.