ISLAMABAD: Prime Minister Imran Khan Friday said the past two years were difficult, but things were now improving "we'd no foreign exchange due to which we couldn't pay our debts."

In a televised addressed to the nation on the Independence Day, he said that "we'd a very difficult two years as we didn't have foreign exchange and couldn't pay our debts."

"We've overcome a huge crisis as we didn't default on payments, but I know it hasn't been easy for the people, I understand the issues they'd to face during the last two years and are still facing," the prime minister added.

However, he said that the economy of the country has improved during the last two years, adding that the stock market trends indicate the confidence of investors and business community in the economy.

He attributed the improvement in the economy to the boom in the construction sector, which led to jobs and wealth creation, adding, despite the pandemic, our tax collection in June exceeded our targets.

"The exports have gone up despite Covid-19 crisis that wreaked havoc on global economy," Khan added.

He also congratulated the nation for coming together and fighting against the coronavirus, saying "hardly any other nation was able to successfully balance between the economy and the virus".

The prime minister pointed out that the number of confirmed coronavirus cases had gone down and the economy had started an upward journey as well.

He also cautioned that decreasing number of Covid-19 cases did not mean we have won this battle, adding, the people must continue taking precautions, the most important and basic of which was to wear a mask, while leaving the house.

The prime minister also told the nation that the government had reached an agreement with independent power producers, which would lead to a reduction in the cost of electricity production, thus, reducing tariffs.

Khan said that Pakistan's industries could not compete with other nations of the Subcontinent such as India and Bangladesh as the cost of production in the two countries was low due to cheap electricity.

Pakistan, meanwhile, is facing a huge circular debt because the tariffs were less than the cost of generating electricity, which was high.

He also announced that a reform package would also be introduced in the coming days in order to improve the distribution network in the country by reducing line losses and curbing power theft.

The prime minister said that Pakistan was a glorious dream of an Islamic welfare state where law would be supreme and everyone would have equal rights, regardless of their race, caste or religious beliefs.

"Hard work and determination was needed to realise this dream...the government was now working towards achieving the vision of the forefathers," he added.

Khan also expressed solidarity with the people of Indian-occupied Kashmir, and pledged that Pakistan would continue to extend diplomatic and moral support to the Kashmiris' struggle for their right to self-determination.

The prime minister assured the IoK residents that Pakistan would continue to raise the Kashmir issue on all forums, and would also pray for the residents of the occupied territory.

Copyright Business Recorder, 2020