Prime Minister Imran Khan said on Thursday that the country was headed towards a default on its payments when the Pakistan Tehreek-e-Insaf (PTI) came into power in 2018, reiterating that the economy was facing a massive crisis with pressure on its foreign exchange reserves as well as the currency.

The remarks came during his address in Islamabad when the PTI chief briefed the country on a ‘performance review’ of the party’s three years in the government.

The cricketer-turned politician reviewed his party’s rule, recapped progress, and promised a more equitable distribution of resources as PTI heads into its final two years of governance.

“We had no money to return loans (in 2018),” said the premier. “We were defaulting on payments because we didn’t have enough foreign exchange to make those payments. That is how we took over.

“We were facing the biggest deficit in Pakistan’s history. If Saudi Arabia, China, UAE had not helped us, our currency would have depreciated further and inflation increased significantly.”

If Saudi Arabia, China, UAE had not helped us, our currency would have depreciated further and inflation increased significantly: PM Imran

PTI took over at a time when Pakistan's foreign exchange reserves had fallen to a combined – those held with the central bank as well as commercial banks – $16.7 billion. With import cover at an alarmingly low level, Pakistan was desperately seeking foreign currency deposits with the International Monetary Fund (IMF) being the natural option.

However, an insistent delay in going to the Washington-based lender led many to criticise the political party that called Khan out on his political inexperience. However, the prime minister said that going to the IMF is not that simple.

“When you go to the IMF for a loan, they want to know how you are going to return it. They will put constraints on your economic plans and ask for actions in different sectors that may not be in the interest of a common person.

“And when you follow IMF’s stipulations, you suffer.”

Fast forward to 2021, Khan said, Pakistan’s reserves have increased to over $27 billion with remittances from overseas Pakistanis being a substantial contributor.

“They are our biggest asset. They have helped us during this tough time.”

Meanwhile, Khan stressed that Pakistan needed to empower women through education.

“The government is also working on different projects to support women in rural areas.”

The prime minister also pointed out how his government has initiated a number of projects to help the masses in the face of higher inflation. Pakistan saw its first contraction in over seven decades before, boosted by various incentives including a lower discount rate, saw the South Asian economy post a nearly 4% growth rate in 2020-21.

“Kamyab Jawan will be another major project that will support 4 million poor families across Pakistan. We plan to give interest-free loans, technical education, health insurance and health cards through his programme.

“Another project regarding affordable housing is also in the works.

“Our vision is to ensure that laws are applicable to all irrespective of the people’s financial status. We have to end the culture of elite capture,” added Khan.

Pandemic response

Meanwhile, reiterating Pakistan’s response to the pandemic, Khan said the country has done well.

“Everyone wanted us to impose a lockdown, but it would have impacted the country's poor communities.

“I want to congratulate Asad Umar for his services.”

Umar, a former CEO and president of Engro Corp, heads the National Command and Operation Center that is the focal body of the pandemic-response efforts.

Background

The performance report, launched by the government at the Jinnah Convention Centre in Islamabad, gives an insight into the performance of each ministry and division as the government attempted to facilitate the citizens in line with the vision of 'Naya Pakistan', a PTI slogan created when it was rallying ahead of the elections.

The performance report 2018-21 has been compiled by the Ministry of Information and Broadcasting under Chaudhry Fawad Hussain.

PM inaugurates Pakistan's first 'smart forest' in Sheikhupura

Senior cabinet members among others were present on the occasion.

Since the PTI formed the government in August 2018, it has launched a number of projects such as the 10 Billion Tree Tsunami drive, Clean Green Pakistan drive, Ehsaas, Sehat Sahulat Programme, Kamyab Jawan Programme and others. The projects have been part of government efforts to combat climate change and global warming, and assist the country's social sectors through health and education.

However, its main challenge has been to revive the economy amid the pandemic that hit the world early last year. Pakistan also saw its first economic contraction in over seven decades in fiscal year 2019-20 before it reversed sharply to post nearly 4% growth in the very next year.

Earlier, Chaudhry took a dig at the opposition, questioning how many previous governments had been accountable in the past. "Those who ruled for thirty years are hiding their faces," the minister tweeted.

He further said that the PTI can proudly present its performance to the nation.