Countries imposed strict lockdowns suffered a lot economically: Asad

ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives Asad Umar Monday while justifying the strategy of the government for not imposing strict lockdown, said the countries that imposed strict lockdowns, had suffered a lot economically.

Participating in the budget debate in the National Assembly, he particularly mentioned the deteriorating situation of India where strict lockdown was imposed on March 25, affecting livelihood of millions of people.

He said the lockdown could not check the spread of coronavirus, however on the contrary, it badly affected economy of the country, pushing half of the Indian population below the poverty line.

He said the opposition parties remained obsessed with Imran Khan, saying that it was ironic that they blame the government for coronavirus at a time when the whole world was engulfed by the pandemic including Pakistan.

He said the coronavirus had rendered around 40 million people jobless in the United States of America (USA) while it had hit hard on Britain economy, bringing it down by 30 percent in April 2020.

Same was the situation with other countries, he added.

He said the country’s economy was growing well before the outbreak of coronavirus as mentioned by economic indicators, which showed that the current account deficit had reduced manifold, while the exports were increasing and imports declining, hence narrowing the trade deficit of the country.

In addition, the foreign exchange reserves were growing whereas other economic indicators were showing positive growth before the coronavirus hit the country, he added.

He criticized the previous government of Pakistan Muslim League (N) for its ill-thought policies, which he said had ultimately resulted in its defeat and success of Paksitan Tehreek-e-Insaf in elections.

The minister also informed the house about the Rs. 650 billion Public Sector Development Programme (PSDP) allocations, saying that special focus was being given to education and health sectors of the country.

He said in the PSDP 2020-21, the funds for education and health sectors had been increased from 29 percent last year to 38 percent of total PSDP during the current fiscal year.

Talking about the spending on education, the minister said the development expenditure by the Higher Education Commission (HEC) was highest-ever in this sector in the history of Pakistan, and 50 percent higher than the second highest funding.

He said earlier there were around Rs. 18 billion development spending, which had been recorded at Rs. 28 billion during the fiscal year 2019-20.

The minister said during the upcoming year, it would be further enhanced by 25 percent and increased to Rs. 35 billion.

He said there were only Rs. 40 billion projects coming under federal PSDP, however, added that the government envisaged Rs. 50 billion spending on matching-grant projects and all the provinces had been consulted in that regard.

He said Rs. 50 billion would help improve the health sector, which had been neglected for last 30 years.

He said the development funding by the federal government during next year would be increased manifold to Rs. 65 billion.

He said most of the allocations under federal the PSDP this year were made for Balochistan projects as the government was paying special attention at the special areas.

Likewise, Rs. 100 billion had been earmarked for erstwhile FATA districts, Gilgit Baltistan and Azad Jammu and Kashmir.

He said the government would help complete all the projects of Karachi city including Karachi Circular Railway and Greenline.

The minister said Rs. 77 billion had been earmarked for China Pakistan Economic Corridor (CPEC) to continue projects under it adding that ML1 was becoming reality, and work on it would be started next year.

Likewise, he said, the government was determined to continue and complete various road, transmission lines and electricity projects.

He said this year around 2000 megawatt electricity projects under CPEC were completed.

The minister said physical work on three Special Economic Zones (SEZs) including Faisalabad, Rashakai and Bostan had been started.

He said Sukkur-Hyderabad motorway costing Rs. 206 billion would be started this year while Rs. 50 billion had been earmarked for in FY 2020-21.

He said the incumbent government had simultaneously initiated work on three hydel projects including Diamer-Bhasha dam, Mohmand Dam and Dasu dam, which he said would generate electricity of 7460 megawatt.

He said feasibility work on initiating various water related projects would also be initiated.