–Hafeez Shaikh says Opp can’t criticise PTI govt for going to IMF as it has done the same
ISLAMABAD: The National Assembly session on Wednesday was adjourned after the remarks uttered by Energy Minister Omar Ayub Khan, wherein he stated that corruption is “in the genetic makeup of the Pakistan People’s Party (PPP) and the Pakistan Muslim League-Nawaz (PML-N)”, caused pandemonium in the House.
In a speech laden with criticism, the minister called out the performance of the previous governments, stating that there was an unprecedented price hike during the tenure of the PPP. In an apparent reference to PPP co-chief and former president Asif Ali Zardari, he also alluded to “Mr 10 per cent” in his speech.
The remarks were bashed by PPP and they asked Deputy Speaker Qasim Khan Suri to ask the minister to refrain from making such comments.
However, when Khan continued his tirade against the opposition, PPP lawmakers led by Agha Rafiullah surrounded the energy minister and started tearing copies of the agenda, prompting treasury members to step in to prevent an altercation.
While Ayub and Rafiullah engaged in a verbal clash, treasury members, including Minister for Economic Affairs Hammad Azhar and Minister for Science and Technology Fawad Chaudhry, stepped in to pacify the PPP lawmakers.
HAFEEZ SHAIKH MINCES NO WORDS:
In his speech, Special Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh lashed out at the opposition leaders for criticising the Pakistan Tehreek-e-Insaf (PTI) government and said that those who had themselves approached the International Monetary Fund (IMF) should not be criticising the government for doing the same.
Addressing the session, Shaikh responded to what he dubbed was “undue” criticism from opposition benches. Shaikh said that the governments that came to power both in 2008 and 2013 had gone to the IMF.
“This is a national problem that our development isn’t at the pace that we don’t go to the IMF. No one goes to the IMF happily, whether it be the previous governments or the current one. “The situation leaves us no choice [but to do so],” he added.
“Some people have claimed that in negotiations with the IMF, individuals from both parties are representatives of the IMF,” the advisor said, adding that it was disappointing that people like Reza Baqir – who is the incumbent governor of the State Bank of Pakistan — were being discarded for having worked in the IMF earlier.
“We should be proud of Reza Baqir. He went on to study in the best American universities after having completed his initial studies from Lahore. He went on to join the IMF solely on the basis of his capabilities,” Shaikh said, adding that those who did not have the credentials to even enter the halls of IMF were critising the SBP governor for having worked there.
Summarising the situation that was steering the government, the premier’s special assistant said there was a loan of Rs95bn, Rs5,000bn to be returned in the next two years, highest current account deficit in Pakistan’s history and nosedived reserves alongside an upward trajectory in the fiscal deficit.
He said that the other “dangerous situation” inherited by the government, which needs to be focussed on, is regarding exports.
“The crisis in Pakistan is that our country doesn’t have dollars […] We are going on depleting dollars and increasing our liabilities in dollars. And what is happening to exports? Because there is only one way to increase dollars, that is exports.”
Shaikh said that over the past five years the rate of growth in exports was zero.
“A system in which the dollar was purposely kept cheap [was in place],” he said, adding that imports were growing in the country, during this time and this affected industrialisation and exporters were disadvantaged.
“This is an issue we have to think about as a country. My main purpose is not to criticise but to present facts.
“This is also a challenge for the government.”
He said that other concerns were the slow rate of development in agriculture as well as the electricity sector.
“We as a country have been unsuccessful in solving this problem and what manifests this is the circular debt.”
In summary, Shaikh said that when the PTI government came to power, it could see the country entering into a crisis and no one was ready to give Pakistan a loan.
“When people raise questions that you didn’t do this or that, the fundamental reason for that was that dollars had been depleted and nobody was ready to give us a loan.”
Shaikh said that under all conditions they had to save the country from defaulting.
“Why? Because it was be very dangerous for Pakistan.”
He said various allies of Pakistan had assisted it and another important step was going to the IMF.
With regards to managing expenditures, he said that a strict budget was set.
“I want to tell you that taxes in the first seven months, the target was around 2,200 [billion] and we achieved around 2,100,” Sheikh said.
Additionally, he said that borrowing from the SBP over the past seven months was at zero, as they had decided not to borrow from the State Bank because such borrowing tends to be inflationary.
The premier’s special assistant said that when they sat down to make a budget they decided that if they were to spend money on anyone it would be on two groups — the weakest segment of society and those who are supporting the government in increasing exports.
He said that the impact of the measures taken to benefit exporters was that exports had increased.
“After a zero per cent growth in five years, in the first seven months exports grew,” Shaikh said, adding that this had occurred at a time when countries like Bangladesh and Vietnam had also been unsuccessful in increasing exports.
According to Shaikh, a big danger was the current account deficit, which he said had been reduced from Rs20bn to Rs13bn in the first year. He added that there was a primary surplus for the first time in ten years.
“I am not saying anything political, I am simply stating the facts,” he said.
With regards to fiscal deficit, Shaikh said that it had also seen a downward trend.
Coming to revenues collected by the government, the adviser on finance said non-tax revenue had been increased by 170pc. He added that the target of non-tax revenue was Rs1,100bn, however, he said that it would Rs1,500bn.
Sheikh shared that the exchange rate also appeared to be at a stable level.
Earlier in his address, Energy Minister Omar Ayub stated that the opposition continue to cry crocodile tears, but are forgetting about the ground realities during their tenures.
Reading aloud from a report, the minister said: “[In 1974] the measures and the price situation were so acute that despite the measures outlines above, there was a higher rate of inflation in the economy.”
Coming to the current situation, Ayub said that the PML-N had also pointed fingers at the government for the current deteriorating economic situation.
“They talk about different things, but when it comes to figures […] in five years there was a 101pc increase in the circulation of currency notes during the PML-N government. Who had to face this, Imran Khan and the PTI government.
“What Hafeez Shaikh had said previously, they ran the rupee into the ground, Miftah Ismail started it and we had to face the consequences,” he said.
“They played with the country and picked up a mountain of debts. In the first 60 years of this country’s history, our debt was Rs7,000 bn. Then came the PPP which took it up to Rs15,000 bn. The PML-N took it one step further by making it soar to Rs30,000 bn,” he explained.
“They are scared because the PTI government is moving towards success. We will overcome the obstacles they have left behind. Their workers themselves are coming to us asking how to join the party as their leaders are missing in action,” he added.
The policies drafted by the previous governments are like a noose around our neck, he said.
Former prime minister Shahid Khaqan Abbasi, responding to Shaikh, questioned “If there was a shortage, why didn’t the minister for food security enforce wheat emergency in the country?”
He alleged people will not be provided any relief [by the current government].
“Why don’t the ministers here apprise us of their performance over the past 1.5 years? Other than banning plastic bags, nothing concrete has been done.
“While the minister has spoken about the national government, nobody here has mentioned the role of the Punjab government and questioned why this problem [wheat] was created.”
He added that the problem is not a shortage of wheat and sugar but rather the prices. The government should assure the people that prices will be reduced and the [profiteer and hoarder] mafia will be exposed, he added.
Abbasi said that there was an economic meltdown in the country and if the finance minister believed what he was saying, then he could only sympathise with Shaikh, the government and the people of Pakistan because none of it was based on facts. He claimed that if the PTI-led government completes its five-year term, the country’s debt will be doubled.
