Pakistan Muslim League-Nawaz (PML-N) vice president Shahid Khaqan Abbasi on Saturday said that the country is facing stagflation due to 'failed' economic policies, posing serious challenges not only to the country's integrity but also in pursuing an independent foreign policy. Addressing a news conference along with former finance minister Miftah Ismail and party spokesperson Marriyum Aurangzeb, the former premier released the 'white paper' titled "Elected vs Selected... PML-N vs PTI [May 31, 2018 Vs May 31, 2019]" on the state of the economy one year after the PML-N left the government on May 31, 2018.
Abbasi pointed out that despite PTI's tall claims, there has been no increase in the revenue as it remained flat during the last nine months of the PTI government. He said that there is a shortfall of Rs 400 to Rs 500 billion in government revenue, although 50 percent of the government's revenue comes from imports.
He said that there has been a record depreciation of rupee-27 percent against the US dollar, 21 percent against pound sterling, 22 percent against euro, and 27 percent against each UAE dirham and Saudi riyal. "This is very challenging situation, as the depreciation of currency is directly linked to inflation," he said. Abbasi claimed that the gross domestic product (GDP) growth has declined from 5.8 percent to 3.3 percent as projected by the government.
"This is very serious situation and the country has reached a state of economy which is called stagflation. It's a huge challenge for the government," he added.
Comparing the prices of major consumer products, he said that petrol prices has gone up by 23 percent [not included the increase on May 31, 2019], diesel, 24 percent, LPG, 8 percent, sugar, 30 percent, wheat flour, 10 percent, power tariff [above 700 units), 20 percent, gas tariff, 143 percent, daal Masoor, 9 percent, daal Moong, 36 percent and cooking oil, 10 percent.
"This is unprecedented in the country's history, as the prices have never been increased so heavily in such a short period of time," Abbasi claimed, saying that on May 31 last year, the inflation rate of the country was 3.9 percent; however, the inflation rate at present is 7.5 percent.
He maintained that the current expenditure for FY19 has increased to almost Rs 7,000 billion. "This has happened despite the tall claims of cutting expenditures of the government and there has been an increase Rs 1000 billion in the current expenditure compared to FY18," he added. "You can't cut cost by selling cars and bedfellows," he added.
About the gross public debt, he said that it has been increased to Rs 28,600 billion which was Rs 25,000 billion on May 31, 2019, adding that the figure could reach Rs 30,000 billion next year.
Abbasi said that foreign debt that has increased to $ 88 billion during the nine months of the PTI government is showing an increase of $ 5 billion. He further said that the policy rate has been increased to 12.25 percent, adding that it will negatively impact the investment in the country.
"The overall figures, especially the increase in foreign debt, have posed serious challenges in pursing an independent foreign policy. Thus, the state of our economy is dictating our foreign policy which is very dangerous, as it also poses serious challenges to the country's integrity," the former prime minister asserted. He said that there has been a reduction of 30 percent in the PSDP, adding that it is very unfortunate.
To a question, Abbasi said that there has been no option left with the opposition parties except for launching an anti-government drive after the Eid. "I believe there should be a strong protest both in and outside the Parliament," he said, adding albeit there is no plan to topple the government.
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