PTI govt measures pull economy from brink of collapse

Vertex

Councller (250+ posts)



Tehreek-e-Insaf (PTI) came to power on the promise of “Naya Pakistan” and now two years down the road, though the situation is far from perfect, Pakistan is no longer teetering on the edge of collapse.

It may seem repetitive but the PTI government did indeed inherit a structurally flawed economy and without certain measures, it adopted, Pakistan would have faced the bleak prospect of economic collapse similar to that in the late 1990s.

According to an AKD Securities’ report, “The smart albeit difficult decisions of the government have been manifested in a much improved outlook with major sectors already witnessing growth including cement, fertiliser, auto, etc where numbers have consistently picked up pace after multi-year lows on account of Covid-19 pandemic.”

Explaining the quagmire which Pakistan’s economy was in, the report stated, “Our income did not match our expenses and the bubble was eventually bound to burst.”

Hence, when the PTI government came, it was faced with the dilemma of bridging the shortfall, for which it had to turn to its friendly allies, and enter into an International Monetary Fund (IMF) programme. The government initiated a number of reforms, among which was ensuring a flexible market-determined exchange rate, that helped bring the current account deficit to a manageable level.

Lauding the government’s performance, the report added that while the economy was on the mend, the Covid-19 outbreak derailed the entire process. Despite this sudden development, the government tackled the situation well as it undertook quick steps including announcing an economic package worth Rs1.2 trillion, initiating a smart lockdown and lobbying for international deferment of debt payments by poor countries.

Additionally, the central bank announced multiple subsidised schemes for businesses under which Rs138 billion had already been approved for disbursement, it highlighted. The report added that aid to small businesses, particularly small-scale retailers, was needed to protect the vulnerable segment of society. “Planning for the longer term is the need of the hour where Pakistan should capitalise on trade disruptions.” The report also suggested tapping the potential of IT industry in Pakistan.

Published in The Express Tribune, August 6th, 2020.


 
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Awan S

Minister (2k+ posts)
Pakistan's economy was finished if Ik would have not taken over. The Army knew it very well.
When Khan government took over economy was growing at 5.7% and even before corona it was close to zero. It is the worst economy in 68 years. It could have been worse had army left it to PTI. Army removed PTI's superstar Asad Umar and brought in Hafeed Sheikh to save it from complete collapse. Since then army is replacing every cabinet member and institution head with their on service or retire General. Khan has nothing in his hand now; army has taken over completely.
 

Muhammad Jibran

Chief Minister (5k+ posts)
Corona crisis came at a critical time when all the measures taken by the govt. were expected to pay off but it wasn't meant to be.
Pakistan's economy was finished if Ik would have not taken over. The Army knew it very well.
This report states the perspective of AKD securities..... Whose chairman has been appointed member of cricket board......

I am amazed to see the reaction
 

Citizen X

Prime Minister (20k+ posts)
If you want to see what would happen if Khan didn't come it and took emergency steps to top the total collapse of the economy then look at Lebanon and what is happening there. And this would exactly been the situation of Pakistan if Imran Khan didn't come in. Sometimes I think IK should have let the country default and go into hyperinflation where you would be buying one roti for 500 rps and it was easy for him to do this also because the country he was handed over was almost there anyways and easily blamed Pmlun govt for that. Tub sub ki sahi ki cheekian nikalty and if he did even 10% of what he has done, the country would be singing his praises.

His problem is he cannot see Pakistan and Pakistanis suffer just to earn political points.

With the Middle Eastern nation's economy under pressure, the Lebanese pound or lira has lost over 80% of its value since October. Years of corruption and debt mismanagement, coupled with the government's recent lockdowns to stop the spread of the coronavirus, have plunged the country's lower and middle classes into poverty.

Lebanon's economy has been hurting for several reasons. It exports few products and relies heavily on imports, and as the country has continued borrowing from creditors, its gross debt has reached a whopping $90 billion — making it the third most indebted country in the world. The country defaulted on its external debt in March "

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Citizen X

Prime Minister (20k+ posts)
When Khan government took over economy was growing at 5.7% and even before corona it was close to zero. It is the worst economy in 68 years. It could have been worse had army left it to PTI. Army removed PTI's superstar Asad Umar and brought in Hafeed Sheikh to save it from complete collapse. Since then army is replacing every cabinet member and institution head with their on service or retire General. Khan has nothing in his hand now; army has taken over completely.
Baba this fools paradise bubble economy running on borrowed money was about to pop any second. I think the nooras right now are actually relieved they are not in power because there was no way they could run the country even one more year because no one was willing to give ganj anymore money. Saudi, IMF, World Bank, USA, UK or Europe.

We would become another zimbabwe or lebanon then.
 

Sonya Khan

Minister (2k+ posts)
When Khan government took over economy was growing at 5.7% and even before corona it was close to zero. It is the worst economy in 68 years. It could have been worse had army left it to PTI. Army removed PTI's superstar Asad Umar and brought in Hafeed Sheikh to save it from complete collapse. Since then army is replacing every cabinet member and institution head with their on service or retire General. Khan has nothing in his hand now; army has taken over completely.
Can you explain why with this ‘thriving’ economy of yours we had imports of around 50 billion dollars and exports of only 22 billion dollars ???. ..consistently.....
And ... If you can somehow explain what was the plan of PML n to bridge the gap year after year , we would be grateful to you for enlightening us .....
 

Citizen X

Prime Minister (20k+ posts)
Can you explain why with this ‘thriving’ economy of yours we had imports of around 50 billion dollars and exports of only 22 billion dollars ???. ..consistently.....
And ... If you can somehow explain what was the plan of PML n to bridge the gap year after year , we would be grateful to you for enlightening us .....
And you re forgetting to ask where did the money from the massive loans go?
 

surfer

Minister (2k+ posts)
When Khan government took over economy was growing at 5.7% and even before corona it was close to zero. It is the worst economy in 68 years. It could have been worse had army left it to PTI. Army removed PTI's superstar Asad Umar and brought in Hafeed Sheikh to save it from complete collapse. Since then army is replacing every cabinet member and institution head with their on service or retire General. Khan has nothing in his hand now; army has taken over completely.
So what happened to the revolution nawaz and Maryum were going to lead against the army?
 

Awan S

Minister (2k+ posts)
Can you explain why with this ‘thriving’ economy of yours we had imports of around 50 billion dollars and exports of only 22 billion dollars ???. ..consistently.....
And ... If you can somehow explain what was the plan of PML n to bridge the gap year after year , we would be grateful to you for enlightening us .....
You don't have to bring trade balance to zero; look at India. We are consumer market and our economy will be on import based. Rupee fell 35% in Khan government but export is not even high 5%. It was possible to bring down imports at controlled rate without bringing down economy from 5.7% to zero.
 

Sonya Khan

Minister (2k+ posts)
You don't have to bring trade balance to zero; look at India. We are consumer market and our economy will be on import based. Rupee fell 35% in Khan government but export is not even high 5%. It was possible to bring down imports at controlled rate without bringing down economy from 5.7% to zero.
Do you know that an import based economy without exports is actually not an economy but a false bubble ???? ...... Now answer the next question..... How were Sharifs planning to bridge the gap year after year ???? ......
 

Awan S

Minister (2k+ posts)
Do you know that an import based economy without exports is actually not an economy but a false bubble ???? ...... Now answer the next question..... How were Sharifs planning to bridge the gap year after year ???? ......
This import based economy bubble is everywhere where ever it is big population except China. Look at India & Bangladesh both have huge population therefore their imports are much higher than exports. Was PTI able to increase exports despite 30% decrease in the value of rupee? The answer is big no. Sharifs would have reduced imports but not this way to bring economy from 5.7% growth to zero. No one achieved this in 68 years. Congratulation to PTI they hold all negative records
 

A.jokhio

Senator (1k+ posts)



Tehreek-e-Insaf (PTI) came to power on the promise of “Naya Pakistan” and now two years down the road, though the situation is far from perfect, Pakistan is no longer teetering on the edge of collapse.

It may seem repetitive but the PTI government did indeed inherit a structurally flawed economy and without certain measures, it adopted, Pakistan would have faced the bleak prospect of economic collapse similar to that in the late 1990s.

According to an AKD Securities’ report, “The smart albeit difficult decisions of the government have been manifested in a much improved outlook with major sectors already witnessing growth including cement, fertiliser, auto, etc where numbers have consistently picked up pace after multi-year lows on account of Covid-19 pandemic.”

Explaining the quagmire which Pakistan’s economy was in, the report stated, “Our income did not match our expenses and the bubble was eventually bound to burst.”

Hence, when the PTI government came, it was faced with the dilemma of bridging the shortfall, for which it had to turn to its friendly allies, and enter into an International Monetary Fund (IMF) programme. The government initiated a number of reforms, among which was ensuring a flexible market-determined exchange rate, that helped bring the current account deficit to a manageable level.

Lauding the government’s performance, the report added that while the economy was on the mend, the Covid-19 outbreak derailed the entire process. Despite this sudden development, the government tackled the situation well as it undertook quick steps including announcing an economic package worth Rs1.2 trillion, initiating a smart lockdown and lobbying for international deferment of debt payments by poor countries.

Additionally, the central bank announced multiple subsidised schemes for businesses under which Rs138 billion had already been approved for disbursement, it highlighted. The report added that aid to small businesses, particularly small-scale retailers, was needed to protect the vulnerable segment of society. “Planning for the longer term is the need of the hour where Pakistan should capitalise on trade disruptions.” The report also suggested tapping the potential of IT industry in Pakistan.

Published in The Express Tribune, August 6th, 2020.


MAsha-Allah...it all bcz of Allah's help....TI must remain humble...May Allah help, bless and guide us all..
 

arafay

Chief Minister (5k+ posts)
وہی حالات ہیں فقیروں کے


دن پھرے ہیں فقط وزیروں کے


اپنا حلقہ ہے حلقۂ زنجیر


اور حلقے ہیں سب امیروں کے


ہر بلاول ہے دیس کا مقروض


پاؤں ننگے ہیں بے نظیروں کے


وہی اہل وفا کی صورت حال


وارے نیارے ہیں بے ضمیروں کے


سازشیں ہیں وہی خلاف عوام


مشورے ہیں وہی مشیروں کے


بیڑیاں سامراج کی ہیں وہی


وہی دن رات ہیں اسیروں کے
 

Pathfinder

Chief Minister (5k+ posts)
This import based economy bubble is everywhere where ever it is big population except China. Look at India & Bangladesh both have huge population therefore their imports are much higher than exports. Was PTI able to increase exports despite 30% decrease in the value of rupee? The answer is big no. Sharifs would have reduced imports but not this way to bring economy from 5.7% growth to zero. No one achieved this in 68 years. Congratulation to PTI they hold all negative records
humor us on something. why did tooi wal export fall below peepee. knowing how s#it peepee and its legendary incompetence is! how was that possible?
 
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