Azhar defends economic policies

Minister for Economic Affairs Hammad Azhar on Tuesday said that a sinking economy which the government inherited had now been put on the right track due to the prudent economic policies of Prime Minister Imran Khan.

Taking part in the motion to discuss economic conditions of the country in the National Assembly, he said that the economy had taken off as there was stability in the economic sector, and the current account deficit had gone down, paving the way for high growth in the future.

Azhar said that the current account deficit had come down by 84 percent and the market-driven currency was stable at Rs155 to a dollar since June 2019. He said that the economic situation of the country was in poor shape during Pakistan Muslim League-Nawaz (PML-N) tenure.

Azhar said that the PML-N government had wasted about $20 billion to artificially stabilize the rate of the dollar. He said that the government had also cleared short-term liabilities worth Rs400 billion, recalling that the country was heading to default when the Pakistan Tehreek-e-Insaf (PTI) took over the reigns back in 2018.

"The government is all set to enter the higher growth trajectory in the next fiscal year. The prices of wheat had been stabilised in three provinces, while efforts were being made to reduce the commodity price in Sindh," Azhar added.

The minister said that fertiliser prices had already been decreased by Rs300 to Rs400 per bag, adding that negotiations were also under way to further decrease prices.

He claimed that electricity tariffs had increased due to an expensive tariff agreement signed by the PML-N government. The minister said the gas companies which were in profit had been pushed into Rs160 deficit by the PML-N government. He said the government took tough decisions to steer the country out of bad economic conditions and avoid the looming default. He said the government paid off over 10 billion dollars of debt in its first year in power, which is the highest debt-servicing done by any government.

Azhar reiterated the government was determined to bring to zero the circular debt by December 2020. Due to the steps taken by the government, the country's foreign exchange reserves had increased substantially, he added.

Azhar said Moody's had upgraded Pakistan's rating. He, however, admitted that inflation had increased due to tough steps taken by the government keeping in view the position of the economy. "If things were going quite well when PML-N was in power, why they opted for approaching International Monetary Fund (IMF)...a healthy economy which is headed towards progress does not need a bailout," he said, while referring to PML-N's criticism for seeking a bailout package from the IMF. "The IMF is telling us we have to clear the deficit they have left behind. By December 2020, we have to bring circular debt down to zero," he added.