Imran Khan makes tall claims about Pak economy, says indicators going in right direction

Amid massive corruption, unemployment, inflation and price hike, Imran Khan made tall claims about Pakistan's economy saying that all economic indicators are going in the right direction and the International Monetary Fund (IMF) has stated that the Pakistan economy is moving in the right direction.

He made the statement at the new emergency department of Pakistan Institute of Medical Sciences (PIMS), however, this claim, sadly, indicates that he has not been briefed properly by any of the relevant Ministers, reported Business Recorder in an editorial piece.

The Advisor to the Prime Minister on Commerce, Abdul Razak Dawood, tweets the rise in exports focusing on the percentage rise instead of total figures but does not tweet import figures while refusing to take any responsibility for the massive rise in imports through commerce.

Imran Khan was also not briefed when exports last year reached a historic high of 25.3 billion dollars that the reason behind this rise is a rise in the international price of Pak major export items rather than a corresponding rise in volumes.

Energy sector continues to perform poorly with circular debt rising to 2.4 trillion rupees (against the 1.2 trillion rupees inherited by the Khan administration) attributable to high receivables, theft, high distribution and transmission losses as well as inordinate delays in importing RLNG for the third year running,

Moreover, Khan's statement that the IMF has said the Pakistan economy is moving in the right direction is perhaps the most imprecise and beguiling statement of all for four major reasons, reported Business Recorder.

Meanwhile, IMF voiced concern about the February 28 relief package and the March 1 industrial package envisaging the third amnesty scheme.

They questioned over -- where would the money come from for the subsidies required for the relief package while the amnesty scheme may ensure that Pakistan remains on the Financial Action Task Force grey list which may have negative implications on attracting foreign direct investment, borrowing at cheaper rates internationally and last but not least sale prices of entities earmarked for privatization, reported Business Recorder.

Meanwhile, Khan's faulty priorities have compounded problems for the country's economy which is facing issues related to inflation and unemployment.

The economic managers are being constantly appreciated by the Prime Minister and his cabinet for boldly spearheading the Prime Minister's flagship projects, including housing loans to the poor and cheap to zero-interest loans to the poor and vulnerable under the Kamyaab Pakistan programme.

While the intent is laudable, the success or otherwise of these programmes remains in question if past precedence is anything to go by.

What is being ignored is the contribution to inflation by using the exchange rate as a shock absorber to contain imports and 50 per cent of all foreign exchange reserves sourced to borrowing, reported Business Recorder.

Also, the most recent Monetary Policy Statement (March 2022), notes that agriculture prospects have somewhat weakened with key inputs such as fertilizers off-take and water availability lower than last year.

( With inputs from ANI )