ISLAMABAD: Special Advisor to Prime Minister Imran Khan on Finance Dr Abdul Hafeez Shaikh on Wednesday admitted that due to the government measures people faced hardships adding that lowering of rupees value increased inflation.
Referring to his career in finance, the special advisor said he has been a part of the country’s administration on multiple occasions but had not seen any ruling party take tough economic decisions the way the Pakistan Tehreek-e-Insaf government has done in the past 18 months.
Shaikh emphasised the importance of unstable political situation in the country playing a part in destablising economy.
“The economy is directly affecting the masses even though the government is working on maintaining financial stability.”
Shaikh added that invoking the past was discouraged but the debt situation inherited by the incumbent government had to be acknowledged. “We had to repay Rs 5,000 billion in loans in FY2019-20.
Shaikh said the fund was established to help pull developing countries out of economic turmoil. “Our economic situation was so bad that nobody was ready to grant us loans,” he recalled.
He said the PTI government aimed to save the country from defaulting on payments.
Highlighting the depleting foreign reserves, he said: “We don’t have dollars – our loans and expenditure is in dollars.” He added that the only way to escape the debt trap is by strengthening exports.
Expanding on the steps taken to boost exports, Shaikh claimed the government had decided against imposing taxes on exporters and was offering electricity and gas on cheaper rates.
Elaborating on the incumbent government’s economic measures, Shaikh said expenditures were reduced. “The army leadership backed our decision to reduce the defence budget,” he claimed. “Salaries of cabinet members, judges and secretaries also faced cuts.”
He said the government decided against taking loans from the central bank but has invested in programmes uplift the poor sector of the society.
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