Economic achievements of PM Imran Khan-led PTI govt (Part I)

ISLAMABAD: Prime Minister Imran Khan-led Pakistan Tehreek-e-Insaf (PTI) government has made achievements and failures on different fronts during the past 3.5 years while continuing its journey to complete the tenure.

The incumbent government led by Pakistan Tehreek-e-Insaf (PTI) under the leadership of PM Imran Khan witnessed many achievements on the economic front that are given below:

1. Rs1,300 billion funding for public welfare programme

The PTI government paid special attention to the social sector and spent Rs1,300 billion under the Ehsas poverty alleviation programme. The Ehsas initiative became the largest social sector programme in the country which benefitted 15 million families. The stipend for each family was increased from Rs12,000 to Rs14,000 and its budget was raised to Rs203 billion.

Moreover, a Rs1,000 monthly stipend was allocated to each deserving family to protect the weak segment from the inflation impacts for the purchases of the ration by allocating Rs106 billion to benefit the 20 million population.

2. Pakistan saved from $1.2 billion penalty in Karkey dispute

Following a successful diplomatic policy, Pakistan and Turkey had amicably resolved the Karkey dispute, saving Pakistan from paying the $1.2 billion penalty imposed by the International Centre for Settlement of Investment Disputes (ICSID).

3. Special measures, relief packages during Covid pandemic

The PTI government provided relief packages to improve the national economy during the COVID-19 pandemic and the State Bank of Pakistan (SBP) reduced the interest rate from 13.25% to 7%.

During the lockdown restrictions in the country, special funds were allocated for the issuance of salaries to the employees of closed industries and schemes were introduced to curb unemployment.

Instead of a complete lockdown, the smart lockdown method was adopted so that people could get employment opportunities. Special packages were given on electricity and gas prices and the bills’ payments were also deferred.

Moreover, under the diplomatic policy, the government made efforts to create ease for the country to schedule payments of the loans. The repayment of foreign loans to Pakistan from G20 countries, especially from Saudi Arabia and France, was deferred following the efforts of the PTI government.

4. Construction package

The PTI government had given a special financial package to the construction sector which increased investment in the sector. 2,125 projects have been registered under the package besides bringing an additional investment of Rs493 billion and increasing employment opportunities.

With Rs30 billion subsidy to the Naya Pakistan programme, poor and middle-class segments have been given the opportunity to own houses.

5. Steps to improve economic growth

The economic growth rate reached 5.4% in FY2021 from 4.7% in FY2020 and it is now expected to be maintained at the same rate in 2022.

6. Decrease in current account deficit

After PTI came into power in 2018, the current account deficit was standing at $19 billion which was gradually reduced by the incumbent government. The current account deficit was recorded at $2.1 billion in 2020 and $1.8 billion in the fiscal year of 2021.

The government is making efforts to restrict the current account deficit to $11.6 billion in fiscal year 2022. Rising commodity prices in the global market made imports expensive, increasing the import bill by 55% which led to a widened current account deficit.

7. Remittances uptrend

During the PTI tenure, remittances from Pakistanis abroad were significantly increased to a record of $29.3 billion in the fiscal year of 2021.

The remittances are now marking the $20.1 billion mark in just eight months of the current fiscal year in February 2022.

8. Steps to increase exports

The export growth was witnessed in the PTI tenure as the country recorded 14% hike in exports to $25.6 billion in 2021.

During the first seven months of the fiscal year till January 2022, the export volume was over $17.7 billion including $11 billion in textile exports.

All Pakistan Textile Manufacturers Association (APTMA) expressed hopes that the textile exports will reach $22 billion, and in the fiscal year of 2023, only textile exports are likely to be hiked up to $26 billion.

Under the PTI government, the payment of sales tax refunds to the export sector was expedited. The shortage of working capital for the exporter was reduced and the exporters had timely funds which led to increasing in production.

9. Revolutionary initiative of Roshan Digital Account

The State Bank of Pakistan (SBP) launched Roshan Digital Account which created ease for the overseas Pakistanis to send remittances, and at the same time, they had the opportunity to invest directly in Pakistan.

In this way, the confidence in the Pakistani government was increased amongst the overseas Pakistanis besides helping the government of Pakistan to improve its foreign exchange reserves. A $3.6 billion investment was made in the foreign exchange reserves via Roshan Digital Account that is likely to be increased up to $5-6 billion by December 2022.

10. IMF bailout package

The PTI government made fundamental reforms to improve the economy through the International Monetary Fund (IMF) programme that was not carried out from 2008 to 2018.

After bringing the reforms, the IMF program has been running smoothly, and out of the $6 billion loan programme, 50% of the funds, about $3 billion have been acquired by Pakistan.

Pakistan is expected to successfully complete the programme with the IMF by October 2022.