No escape from IMF, says Tarin
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LAHORE: PTI Senator and former Finance Minister Shaukat Tarin has said that they were making an emergency economic programme to get country out of current economic crisis, adding that his party would also have to approach IMF and take tough decisions if they come to power in next general elections. Addressing news conference here he projected that economy would contract this fiscal and dismissed government’s claim of achieving Gross Domestic Product growth in range of 1.5 percent. He underscored that country was showing negative growth in large scale manufacturing, agriculture and other sectors. He said under these circumstances, positive GDP growth remained distant dream.
While quoting the latest official figures, Tarin pointed out that LSM registered minus 5 percent growth in last six months while exports and remittance showed decline of 16 percent and 19 percent respectively in December last. “Moreover, for first time, foreign direct investment showed significant decline in December 2022 as compared to corresponding month year ago.
“Government is relying on heavy borrowing to plug it. In last six months, incumbent government has borrowed Rs 6.5 trillion. In comparison, in its three-and-a-half-year tenure, PTI government borrowed Rs 19.3 trillion, but at that time GDP had increased by 74 percent,” he said.
He said inflation stood at 12 percent when their government was removed, adding that now it was touching 25 percent. “Businesses are closing in country and people’s income is decreasing. Shortage of dollars is delaying foreign payments and subsequently hurting our trade,” he added. “Right now, banks are refusing letters of credit due to shortage of dollars. LCs worth $ 4-5 billion are pending due to which 5,700 containers are idle at ports.”
“All (institutions and countries) have attached their inflows with resumption of International Monetary Fund programme”.
Published in The Daily National Courier, January, 21 2023
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