ISLAMABAD: The PTI government will pile up Rs5 trillion debt by end of the current fiscal as in first 9 months, it has borrowed 4 trillion which is unprecedented as such a huge borrowing has never been done from emergence of Pakistan to last era of Nawaz Sharif.
At the end of last financial year in PML-N regime, every Pakistan owes Rs120,541, but at the end of current fiscal under PTI rule, everyone will owe Rs141,509. This has been disclosed by ex-finance minister of PML-N government Dr Miftah Ismail while talking to The News. He substantiated his argument saying that at the end of the PML-N government the total public debt stood at Rs24,592 billion which was at Rs14000 billion at the end of PPP government. This means that PML-N government added Rs11000 billion to the debt in five years which are used in establishing the power plants of close to 12000 MW, developing infrastructure of metro buses, roads under CPEC and more importantly substantial work done in Gwadar port. The usage of loans can be gauged per capita development which remained highest in Nawaz era.
Now from Rs24,592 billion the debt has increased in first 9 months during the PTI regime by Rs4000 billion which will further increased to Rs5000 billion by June 30, 2019. This means that PTI government will jack up the debt of the country to Rs30,000 billion from Rs25000 billion.
To a question, he replied saying that the PTI government has accepted in the Senate that at the end of PML-N government the public debt was at Rs24,592 billion. More importantly the country GDP has shrunk from $313 billion to $280 billion and this has happened in Pakistan history for the first time. Dr Miftah says that this financial year will end up with deficit of 7.2 percent of GDP (Rs2700 billion) at the minimum whereas Dr Hafeez Pasha says that fiscal deficit will hover between 7.5- 7.6 percent.
To resolve the issue of current account deficit which was at $19 billion at the end of PML-N government, the PTI government has borrowed mammoth loan of Rs4000 billion, but the current account deficit issue is still there which still stays at $15 billion.
Dr Miftah in his tweets also mentioned saying that that 7.2 percent of DGP deficit is higher than any deficit ever run by PML-N. ‘In fact 7.2 percent is one of the highest deficit in Pakistan’s history. However, he mentioned that PPP government had ended with fiscal deficit of over 8 percent when the then finance minister was Dr Hafeez Shaikh who is now currently playing pivotal role in managing the Pakistan’s economy in PTI rule.
Dr Miftah says that inflation would stay in double digit while the unemployment is on the rise and poverty is increasing day by day. ‘It is likely that malnutrition and stunting of children is also increasing. He says that PTI can make any false accusation against PML-N but the fact is PTI has made lives of Pakistanis worse off. ‘Incompetence of PTI has been very costly.’
He also tweeted saying: “I want to set the record straight for all those who mistakenly believe that PTI is paying back any loans, or has reduced any government expenditure or reducing the budget deficit, rather it is doing none. In fact it is doing the opposite.”
Miftah ’s another tweet says that PTI left the economy with 5.8 percent GDP growth inflation at 4 percent, but the economy that Imran Khan and Asad Umar has handed over to Dr Hafeez Shaikh is much worse. Growth has gone down to 3.3 percent and inflation has doubled. He said he feels bad for Dr Hafeez Shaikh. Miftah argues that factually Pakistanis are paying the price for incompetence of PTI leadership.
Ex-finance minister also tweets that Pakistanis cannot find jobs. People find it hard to make both ends meet. Gas and electricity is too much costly and patients are paying 3 times of medicines.
The government official in Finance Ministry admitted that PML-N rule ended with debt of Rs24,592 billion but the question that will PTI add Rs5000 billion by June 30 cannot be answered as these are the estimates and June 30, 2019 is still away.
The GDP growth has dwindled to 3.29 percent in 9 months, he said, and as far as contraction of economy is concerned from $313 billion to $280 billion, economic survey of Pakistan for 2018-19 that is yet to be published will reveal about this. About the budget deficit, the finance ministry official responded saying let authorities table the budget for 2019-20 in the Parliament which will mention the fiscal deficit figure.
