KARACHI: PPP Senator Saleem Mandviwalla has expressed his discontent on the severe economic crisis that is befalling Pakistan.
According to the senator all indicators of the country are showing red signals.
In Press Conference on Saturday, senior PPP leader Dr. Asim Hussain said that PMLN Government has been fooling the nation-once they said Pakistan is going to become an Asian Tiger and it will be leaving Canada and other Economies of the world- which they failed to accomplish.
Senator Saleem Mandviwalla added that the reality is that “Pakistan’s macro-economic uncertainties are rising and current external situation can become unsustainable in absence of adequate policy response, as warned by World Bank as well.”
Senator Saleem Mandviwalla also said that Trade Deficit reached to record level high at $27 billion and Forex reserves are decreasing every day, which means Pakistan doesn’t have the capacity to pay its import bills. He further said that Imports reached to $48.58 billion, whereas in PPP five years, oil prices were closed to $120 per barrel but PPP managed to control imports with better success, as compared to PMLN.
Senator Mandviwalla went on to express his deep concern on the falling exports of the country as well. He said that Exports decreased by $4 billion despite so called PMLN experienced team and claims of load shedding free power to industry. Even Bangladesh and Vietnam are performing better than Pakistan.
Senator Saleem Mandviwalla said that Pakistan’s Macro economic situation is worsening with every passing day. “Current account deficit has been on an upward trajectory since PMLN came into Power and reached $12.12 billion, whereas PPP decreased the deficit from $13.87 billion to $4.658 billion during its tenure”, Senator Mandviwalla added.
He also claimed that during first four years of its government, PPP decreased fiscal deficit despite huge oil prices, global inflation and economic downturn, fiscal contraction in US, unprecedented floods in 2010 and 2011, huge security spending and energy crisis that were plaguing Pakistan at the time. Current Fiscal Deficit is over 6 percent due to pending payments of refunds & circular debt.
While expressing his reservations on the huge burden of debt, Senator Saleem Mandviwalla said that “Total debt and liabilities of the country reached high risk level of 25.06 trillion rupees from 16.34 trillion rupees during the last four years and PMLN borrowed more than PPP despite higher GDP growth claims, lower oil prices, lower inflation rate and improved global economic situation. He said that External Debt and liabilities reached record high at $82.98 billion, which shoes that the country is at imminent default risk, as external debt payments are rising sharply along with declining foreign earnings.
Senator Mandviwalla also said that PMLN Government has failed to revive the loss-making entities, “Public Sector Entities (PSEs) are bleeding heavily despite the experienced team of PMLN. Their debt has reached record high of 1.055 trillion rupees and PIA losses increased to $4 billion” He added.
Senator Saleem Mandviwalla went on to say that Liquid Forex Reserves of SBP declined by $4.63 billion during last year (Sep 16 to Sep 17). He added that, “Portfolio investment is declining as PMLN never introduced any policies to promote capital formation and consolidation to improve investment and competitiveness”.
He said that Investment spending is at the lowest in the history. PPP’s Regime had 16% of GDP in investment spending. Election promise of PMLN was to raise the investment spending to 20%. Dr. Asim went on to say that this is just another one of unfulfilling promises of PMLN.
Senator Saleem Mandviwalla also said that “Textile sector is crying and cotton output has declined to lowest in 17 years”. Finally, Dr. Asim also added that, “PMLN government has made no improvement in taxation system and has completely failed to increase direct taxes in the country.”