ISLAMABAD: Minister for Finance and Revenue Senator Mohammad Ishaq Dar on Wednesday termed the Pakistan Tehreek-e-Insaf’s (PTI) white paper on state of economy as selective, misrepresented and devoid of economic context. Ishaq Dar said that he is repeatedly saying that Pakistan will not default. He said that on 6th November 1998 there were $414 million reserves and there were worst kind of restrictions even at that time Pakistan did not default. He said that Pakistan Muslim League-Nawaz (PML-N) Quaid and former prime minister Mian Muhammad Nawaz Sharif, Prime Minister Mian Muhammad Shehbaz Sharif and PDM leadership took policy decision to save the state from default while tolerating the political loss. He said that political capital will also be recovered and it is being restored.

This was stated by Ishaq Dar while addressing a press conference along with cabinet members including Federal Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal Chaudhry, Federal Minister for Energy Engineer Khurram Dastgir Khan, Federal Minister for Economic Affairs Sardar Ayaz Sadiq, Federal Minister for Information and Broadcasting Marriyam Aurangzeb and State Minister for Finance and Revenue Dr. Ayesha Ghaus Pasha.

He further said, “The PTI presentation [white paper] was selective, misrepresented and economic indicators were misleading.” The finance minister said the comparison made in the white paper were incorrect and devoid of economic context. He said the economic situation since April 2022 was strongly influenced by the legacy that the new government got from the previous regime, hence what did the Pakistan Democratic Movement (PDM) led government received that should be denominator for comparison.

However, he said, this context was not seen in the PTI presentation while it had also ignored international economic situation, the commodities super-cycle, Russia-Ukraine war impacts and catastrophic floods in the country. He said that these realities should have been kept in mind for making fair analysis.

He said, the International Monetary Fund (IMF) had predicted that one-third of the globe would be in serious recessional problem in year 2023 and Pakistan was no exception. He said the fund had projected the growth at 2.7 percent of GDP.

Ishaq Dar said the white paper released by PTI on economy was an attempt to mislead the masses as the PTI had inherited a stable economy in 2018.

He said the economy was facing challenges due to Russia-Ukraine war, adding that the country was making economic progress in the previous tenure of the Pakistan Muslim League-Nawaz (PML-N). “The PTI’s tenure witnessed a spike in fiscal deficit and a downfall in remittances,” he added. The incumbent government, he said, collected over Rs3,000 billion in remittances in six months. He said that FBR revenue in first six months of the financial year 2022-23 remained Rs 3,429 billion. He said that PTI government decreased forex reserves by $6.4 billon, adding that during the tenure of current government forex reserves were decreased by $1.8 billon.

He said that PTI government took the ration of debt to GDP at 73.5 percent, adding that this ratio was at 63.7 percent during the PML-N government. He said that total debt and liabilities were at Rs 53,544 billion in 2022, adding that total debt and liabilities were at Rs 29,879 billion in June 2018. Ishaq Dar said that the circular debt was at Rs 503 billion in 2013 and was increased to Rs 1148 billion in 2018, adding that PTI government took circular debt to Rs 2467 billion. He said that PTI has left the circular debt of gas at Rs 1500 billion. Ishar Dar said that the current has planning to bring down this debt to Rs 1000 billion.

He said the prices of medicines rose up to 500pc and food prices also increased when the PTI was in power. “Inflation rate was 4.7pc in 2018 and it rose to 6.8pc in the following year,” he added. Rebutting PTI’s claims, he said the white paper projected fiscal deficit at 7.6pc in 2018, however, it was 5.8pc in actual. “Economy was growing at 6.1pc in the PML-N’s tenure,” he claimed.

He maintained that the PTI claimed that prices of commodities have been increased up to 300pc during the tenure of PDM government, which was false. He said that flour price was increased by 33 percent after formation of PDM government.

Ishaq Dar said that average of annual GDP growth rate during the last five years tenure of PML-N government remained 4.7 percent, adding that the annual GDP growth during the four years of PTI government remained 3.5 percent. Ishaq Dar said that the PML-N increased $112 billion in GDP of the country in dollar terms, adding that PTI government made $61 billion increase in GDP in its whole tenure and it was too after rebasing of the economy. He said that the PML-N took the per capita income from $1389 to $1768, which 27.3 percent increase but during PTI’s four years tenure only $30 were increased in per capita income.

“The PTI said 5.5 million jobs were created in its tenure but it was untrue too,” he added. The PTI, he said, did nothing but criticising the government and it also did not earmark funds for security operations as the PML-N did for Zarb-e-Azb and other security operations.

The Finance Minister said the economic situation since April last year is strongly influenced by PTI’s mismanagement of the economy in last four years and its negative effects continue to impact the economy even now.

He said it ignores the impact of difficult international economic situation caused by commodity super cycle, Russia-Ukraine War and one of the biggest natural catastrophe 2022 floods in Pakistan.

Talking about growth, the Finance Minister said investment as a percent of GDP was higher during PML-N government as compared to PTI tenure. He said the confidence of investors and their sentiments were much better during PML-N tenure than in PTI tenure.

Regarding price hike, Ishaq Dar said inflation rate during the PML-N Government was 8.6 percent to 2.9 percent while in PTI tenure, maximum inflation index reached 12.2 percent and minimum stood at 6.8 percent. He said the government is taking policy, administrative and relief measures to control inflation.

The Finance Minister said despite global economic meltdown and internal devastating flood situation, value added sectors are showing positive and satisfactory growth. He said the government initiative like Kisaan Package, industrial support package and exports facilitation measures helped revival of activities in industrial and agriculture sectors.

About relief measures, Ishaq Dar said budgetary allocation of BISP has been increased to 364 billion rupees and the government has planned to expand the scope of BISP and increase the number of beneficiaries up to 10 million.

He said the government has also included 500,000 more people from Balochistan in BISP, which would cover around 65 percent of the population of the province.

He further said that the coalition government had to increase fuel prices to honor the commitments made by the PTI to IMF

The country was brought back from the brink of default through import management, resurrection of the IMF programme and reduction in current account deficit. He said friendly countries have announced their support which will help manage forex reserves in the country.

Responding to a question, the Finance Minister ruled out any threat of default and expressed the confidence that the country will successfully steer out from the current economic situation.