A series of success

Every year, when new financial year starts and government announces its budget, frenzy ensues. While treasury benches focus on provision of people friendly budget document, opposition sees it as a calamity inflicted upon the citizens. This is what happened this year too when current government presented its COVID-19 hit budget. While some pessimists started criticising government, they conveniently overlooked the successes of PTI government under the leadership of Prime Minister Imran Khan. Ehsaas Programme, Kamyab Jawan programmes, Naya Pakistan Housing Scheme, Model Langer Khana, shelter homes, Billion Tree Tsunami project, Clean Green Pakistan Index, and better foreign policy and measures for the protection and welfare of the minorities are some of the among major achievements of the PTI government as far as the new projects are concerned.

From sustained adjustment in current account deficit to continued fiscal prudence, PTI government has delivered remarkably well, unlike the opponent’s belief. Indicators have to be viewed in entirety. If anything, current account is depicting strength of its external account. To deal with the current account deficit, alleviating domestic demand and consumption through tightening the monetary policy and market based exchange rate regime was the only choice left with the government.

While reducing growth and increasing inflation in the short term, this policy also resulted in reducing current account deficit, increasing exports in quality and value, stabilising and increasing foreign exchange reserves which followed downward trajectory in last 20 months of previous government. These measures lessened the external loan requirements and improved world’s confidence in Pakistan’s economy. Moody’s upgraded Pakistan’s rating outlook from B3 ‘negative’ to ‘stable’ and the foreign direct investment in first 9 months of the FY2019-20 spiked after 11 years. Internally, in 9 months, FBR taxes increased by 17%. After 20 years, budget had a primary surplus of 0.4%.

Criticism from some opponents about houses’ construction is devoid of any merit. As difficult times require difficult decisions, helping people to feed themselves in drastic times like these, is a matter of an absolute primary concern. While there is optimism from Naya Pakistan Housing Authority to deliver what it is mandated for, priority is to feed people and lift them out of poverty especially during the times of COVID-19. Construction and industry sector has faced severe impact in the wake of corona and lockdown, limiting any labour intensive activities.

Pakistan’s unemployment rate is approx. 6% while unemployment rate in India and USA are 27.1% and 13.3% respectively. So while whole world is facing the devastating outcomes of this pandemic, situation in Pakistan is not that melancholic.

According to Economic Survey of Pakistan, ‘The fiscal deficit has substantially reduced to 4.0 % of GDP during July-March, FY2020 against 5.1 % of GDP in the comparable period last year. FBR tax collection grew by 10.8 % to Rs 3,300.6 billion during July-April, FY2020 against Rs 2,980.0 billion in the comparable period last year.’ Clearly showing, government’s fiscal policy paying off in an increased revenue generation.

Poverty alleviation is the primary target for Government. In the wake of COVID-19, a relief package of Rs144 billion was approved to provide immediate cash relief of Rs12,000 to 12 million poor families under Ehsaas. As per provincial and regional breakdown available on the online Ehsaas disbursements portal, as of today, an amount of Rs52.70 billion among 43.42 million beneficiaries in Punjab, Rs.36.63 billion among 30.34 million beneficiaries in Sindh and Rs.22.69 billion has been distributed among 18.45 million beneficiaries of Khyber Pakhtunkhwa.

As per Economic Survey, during July to March FY2020, PBM has disbursed an amount of Rs 2.705 billion through its core projects.

Moreover, ‘Digital Pakistan’ programme, is one of its kind. Keeping in view the critical role played by start-ups in economic growth, job creation, financial inclusion, reducing the income divide, and building a knowledge economy, the vision of Prime Minister Imran Khan is to improve public service delivery through e-governance initiatives. An amount of Rs1 billion has been allocated for implementation of this project.

With the outburst of Covid-19, the government’s efforts to bring the economy back on track which had seen substantial progress were undone by the inescapable lockdown subsequently imposed. Nearly all industries and businesses were impacted. A loss of nearly Rs3.3 trillion to the gross domestic product was experienced, which resulted in a 0.4% contraction in the GDP. Meanwhile, the budget deficit ballooned from 7.1% of the GDP to 9.1%. The Federal Board of Revenue , which had an ambitious target of around Rs4900 billion lost Rs900bn in potential revenues due to the coronavirus shutdown. Despite the hit to the economy, the government managed to scrape together a stimulus package in excess of Rs1,200 billion, of which Rs875 billion have been reallocated from the federal budget.

Conclusively, the PTI government is in fact clearing the clutter gathered over last thirty years and is trying to put the country on the right track, leading to progress and prosperity. All this and other steps by Federal Government under the leadership of PM Imran Khan clearly depict pro-poor policies where the prime objective of any economic decision is to help the down trodden of society. This had been the vision of Prime Minister Imran Khan and this will turn out to be a reality of its dreams.

— The author is a social scientist, research scholar, public policy analyst. She can be reached at dhanakfatima@yahoo.com

Twitter: @DhanakHash