‘Naya Pakistan Certificate’ launched: PM concedes seriousness of food inflation

ISLAMABAD: Prime Minister Imran Khan launched overseas ‘Naya Pakistan Certificate’ Thursday, saying that it would provide opportunity to overseas Pakistanis to bring their money back to Pakistan with good returns.

Speaking at the launching ceremony, the prime minister emphasised the need to attract overseas Pakistanis and stated that as per one estimate, overseas Pakistanis were having as much money as equal to Pakistan's GDP.

"We will try to convince overseas Pakistani to bring their money to the country through purchase of certificates," he added.

The prime minister said that all the economic indicators had been moving in the positive direction except inflation, especially food inflation and attributed the increase in wheat prices to the climate change that was affected by untimely rains.

Cartelization in the sugar led to increase in sugar price in the country, he said and added that like Pakistan, food inflation had also been in India as a result of disruption in supply chain. The premier pledged that next year there would be no issue of wheat and sugar in the country.

Economic recovery has been achieved after taking difficult decision to deal with the current account and fiscal deficit, he said, and added that, after a period of 17 years for the first time, in first quarter of ongoing fiscal year, current account was closed with a surplus.

The prime minister said that the exports and the remittances had increased following incentives provided to the exporters and overseas Pakistanis for remitting money through formal channel, while at the same time, country's import were also curtailed.

We wanted to take ahead the positive development on the economic front, added the prime minister.

He further stated that increase in current account deficit put pressure on exchange rate and depreciation of rupee contributed to inflation as a result of increase in prices of pulses, oil and palm oil.

The prime minister said that the present government inherited current account deficit of $20 billion, which had been reduced to zero level.

The prime minister said that the rupee had started to appreciate with any market intervention (spending money), primarily due to government policies.

The prime minister said that the primary balance was positive, and the government had not borrowed any money and added to the country’s debt, during the last four months.

The confidence of the business community is reflected in the stock market, he said, and added that record sale in cement and steel was recorded, and shortage of labour was being reported in the textile sector, and sale of motorcycles had also gone up.

Copyright Business Recorder, 2020