With the current account deficit mounting and the rupee weakening against the dollar increasing problems for the coalition government, Prime Minister Shehbaz Sharif Friday asked the business community to give suggestions about how to get the country out of this situation.
Addressing the businessmen in Karachi, Shehbaz asked them to speak about their problems and said: “We need to analyze the economic situation with patience.”
The premier then requested the business community to provide solutions, as the local currency had lately been fluctuating significantly against the US dollar.
“I am not here for political point-scoring,” the premier clarified, stressing that he wanted to know the solutions to the problems faced by the business community.
Regarding the rising rates of the US dollar against the Pakistani rupee, he highlighted that the greenback was Rs118 back in August 2018; however, when the coalition government was formed after ousting former prime minister Imran Khan through a vote of no-confidence back in April, the country’s economy was in dire straits.
“When I took the oath on April 11, the rate of US dollar against the Pakistani currently was 182.”
“The Rs60-65 increase in the rupee value against the greenback wasn’t the coalition government’s fault,” he said, adding that when the former government speculated that they would be ousted, they reduced the petroleum prices despite a price hike in the international market, thus going against the conditions of the International Monetary Fund (IMF), says a news report.
The premier said the previous government did not provide any relief to the people of Pakistan in the last four-and-a-half years.
“During the PTI’s tenure loans worth Rs22,000 billion were taken which shows 80% increase from 2018,” he said, adding that “powerful echelons” in the country supported their “favourite” person.
He added that if the PML-N government had been given 30% of this support, the economy would have flourished.
Shehbaz said his goal was to stabilise the dollar rate, emphasizing that sales of locally-produced goods need to be increased.
The premier expressed hope that he would succeed in his plans to bring the economy back on track. He said: “I believe that the country will flourish once people unite. We will move forward with everyone by our side.”Shehbaz further questioned when load-shedding had been eliminated and how did the problem arise again.
Shedding light on his decision regarding the ban imposed on the import of luxury and non-essential items, PM Shehbaz said that while he banned the import of certain items for some time, he did not increase the duties because the “elite class still would have purchased imported items after paying duties.”
“We have to make sacrifices during these difficult times,” he said.
Identifying the issues of the metropolitan, the prime minister said that the “biggest” issue was the lack of water and urged the Sindh government, MQM-P, and the business community to devise a strategy unanimously.
“One billion dollars is available; it is a gift of investment from Saudi Arabia. As prime minister, I am laying this in front of you. Sit together and brainstorm and make a feasibility plan. Set up a desalination plant and I believe that clean water will be available at every home within five years,” he told the businessmen.
“Now it is up to you. This investment is available. It is on the table,” he said, adding that he had told Finance Minister Miftah Ismail on the flight over to Karachi that he wanted to use the funds for the city.
He said the Saudis had stated that they were waiting for viable investment opportunities in Pakistan.
He also lamented the support given to the “beloved” former government and its prime minister by the “powers that be” – a reference to the military establishment.
“In our 75-year history, nobody has and will ever receive the same support […] If any of our governments had received even 30 per cent of the same support, Pakistan’s trajectory would have shot up like a rocket.”
He also questioned why citizens were facing load shedding once again, asking whether it was due to “political instability or the worst corruption, incompetence and lack of planning?”
Earlier in the day, the premier proposed turning the China-Pakistan Economic Corridor (CPEC) into a “trilateral arrangement” between China, Pakistan and Turkey so that all three nations could benefit from its potential.
He made the remarks while addressing a launching ceremony at Karachi Shipyard and Engineering Works for the third MILGEM Corvette built by Turkey, where he was the chief guest.
“Trade activates have the potential to increase manifold with the development of financial and industrial activities. The ongoing CPEC project is set to translate our desire to enhance regional connectivity and maximize trade […] with Gwadar at its focal point.
“I would like to avail this opportunity to propose that let this – CPEC – be a trilateral arrangement between China, Pakistan and Turkey and let us benefit from its wonderful potential to benefit our nations,” he said, assuring the participants that the government was committed to developing maritime infrastructure.
At the outset, PM Shehbaz began by lauding the launch of the warship built with the cooperation and collaboration of a Turkish company. He also appreciated the efforts of naval chief Admiral Muhammad Amjad Khan Niazi and Turkish Defence Minister Hulusi Akar.
“This is yet another great example of cooperation between Pakistan and Turkey under [the] very able and dynamic leadership of President Recep Tayyip Erdogan, who is not only a great brother and friend but also a great supporter of Pakistan’s cause, and under his leadership our mutual fraternal relations have transformed into much higher heights than before.”
