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Home Opinion & Editorial Opinion

PTI performance

Nadeem Moulvi by Nadeem Moulvi
August 28, 2021

The incumbent PTI government has completed its three years and that is usually the time when people stop giving any allowance for the newness of the government and expect solid delivery on the promises made by the ruling party. Imran Khan-led federal government presented its three-year performance report, which has some plus points and many minus points.

Perhaps the most obvious success of PTI has been in the foreign policy arena, particularly with regards to highlighting the cause of Kashmir globally, facilitating the Afghan peace process and countering Islamophobia. But that doesn’t concerned with the ordinary public.

On the economic front, the ruling party’s performance can be termed as a mixed bag. Covid of course, threw a spanner in the works and disrupted the government’s economic agenda. The issue of inflation however remains a serious issue that disproportionately impacts the most disadvantaged segment of our population.

Life for the common man in Pakistan is becoming more miserable with each passing day because of rising inflation and economic turmoil. Perhaps delusion can convince PTI followers that everything is fine in the country, but this does not change the fact that its misplaced governance has worsened the economic woes of Pakistan.

The Current Account deficit is widening once again which could be dangerous if not controlled. Improving the direct tax regime, increasing use of fiscal instruments and enacting key structural reforms are still areas that need to be worked on.

Pakistan borrows more and more every year to repay its outstanding external loans, finance its current account and build its forex reserves. In the process, it will accumulate more debt. Over the last 15 years or so, the country’s external debt and liabilities have grown at a varying pace but no effort made during this period succeeded in containing the exponential increase in the burden.

How are we going to return? The government hasn’t made any policies in this regard.  This is not sustainable for any economy, least of all a fragile one. The government should put its house in order to attract FDI, boost exports, increase tax revenues and incentivize domestic savings to get out of this trap.

Meanwhile, the people of Karachi are still waiting for the ‘Transformation Plan’ announced by Prime Minister Imran Khan. In September 2020, the premier unveiled an Rs1.1 trillion package for Karachi’s transformation. But despite all the rhetoric, the PTI government has yet to deliver on many of the promises that they championed before coming into power.

A decline in the purchasing power of a currency means that the cost of goods and services has increased. The recent PSLM survey highlights the fact that nearly 17 percent of people in Pakistan are in danger of facing food insecurity. The monthly data of inflation for May 2021 shows that inflation is still hovering around 10 percent.

The declining purchasing power in the country can also be gauged from lackluster business activities and reduced job opportunities which have pushed millions of families to poverty. The government needs to do is take proper stock of affairs and present a true picture of the economy to the people who are reeling under rising inflation.

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