Why did Shaukat Tareen call the conditions of IMF strict?

Sohail Shuja

Chief Minister (5k+ posts)
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In PMLN's era, the GDP numbers were high because

1- Investment in the form of CPEC was pouring in
2- The Government obtained loans and smoked them up on projects like Metro bus and Orange line train projects.

So that is why GDP is not a very good indicator of the condition of the economy. It just tells you about the economic activity in the country, but does not guide you in which direction it is heading.

Now we installed more power plants than necessary with this investment, which were clearly not needed. Hence after the PMLN's era was over and the payback period started, we have to bear the capacity charges.

Secondly, after the metro bus and orange train projects were completed, they were are neither reflecting back any money after being operational, nor are they saving us any money we used to spend on import of oil and gas. Rather they have become a white elephant for us, which needs regular forage in the form of heavy subsidies.