PML-N MNAs hit out at govt's economic policies; Ayub responds to criticism

ISLAMABAD: The major opposition party, the Pakistan Muslim League-Nawaz (PML-N) in the National Assembly on Friday, lambasted the government especially the governor State Bank of Pakistan (SBP) Dr Reza Baqir's remarks about massive depreciation of Pakistani rupee against the US dollar.

Speaking on a point of order in the National Assembly, which met here with Speaker Asad Qaiser in the chair, PML-N leader Khawaja Asif claimed that the SBP governor is a "liquidator" of the International Monetary Fund (IMF) and he is destroying the economy of Pakistan as he has done in Egypt.

He came down hard on the SBP Governor for his statement that exchange rate depreciation has benefitted the expatriate Pakistanis, saying "the governor is talking about one million oversees Pakistanis but he is not thinking about 22 crores people who are living in the country".

Asif said that the SBP governor should better speak his heart out about the monetary policy of the bank instead of indulging into political statement, which is simply none of his business. "If he [SBP governor] is so curious to talk about matters pertaining to politics, he should immediately step down [as the SBP governor] and contest election," he chided.

In the same breath, a visibly perturbed Asif continued that the country has partially deflated economically, adding the SBP has given 13 per cent interest rate but he did not tell about $3 billion deposited in the bank. Another PML-N MNA Murtaza Javed Abbasi criticised the government over the poor exchange rate, saying the ruling PTI used to criticise the PML-N's finance minister, Ishaq Dar, for keeping the US dollar stable through "artificial means".

"I challenge the government to bring the US dollar to Rs100, even for the time being, if you can. But I know, you can't," he said, alluding to the record depreciation in value of the Pakistan rupee against the US dollar.

Responding to the criticism by the PML-N lawmakers, the Minister for Economic Affairs, Omar Ayub Khan, said that the PML-N took loans to the tune of $23.6 billion to keep the rupee stable.

"The government is still paying $9.9 billion interest on these loans," he added. In written reply to a question, Minister for Finance and Revenue Shaukat Tareen said that the value of Pakistani rupee has depreciated against the US dollar during the current fiscal year from PKR 157.54 per US dollar as of end June 2021 to PKR 172.78 per US dollar as on 18th October 2021, reflecting a depreciation of 8.8 percent.

He said this is in contrast to PKR appreciation of 6.7 percent in FY-21, adding the movement in PKR is primarily a reflection of the balance of payment position of the country. He said that during first two months of the current fiscal year (FY-22), the current account has recorded a deficit of USS 2,290 million compared to a surplus of US$ 838 million in the same period last year.

He said the PKR/USD exchange rate now depicts two-way movement depending on the demand and supply conditions in the market. Earlier, the National Assembly was informed that the government is making concerted efforts to promote exports through facilitation of industrial sector by reducing its costs and rationalising duties on raw materials.

Responding to a question during question hour, the parliamentary secretary for commerce Aliya Hamza Malik said that the country's exports crossed the figure of over $25 billion last year due to prudent polices of the government. She said gas prices have been rationalised for export-oriented sectors, adding 50 percent relief in electricity tariff for small and medium enterprises was granted till June this year.

She said that customs duty of two percent on 1,623 tariff lines has been removed. She further said duties on 112 tariff lines have been reduced to implement the "Made in Pakistan Initiative".

Malik said that the government is also conducting intensive trade diplomacy and trying to obtain access to new markets for local traders and industry through Free Trade Agreement (FTA) and Preferential Trade Agreement (PTA). She said that the government launched "Look Africa" policy initiative to promote exports to non-traditional markets in the African region.

She said Pakistan has gained market access to Indonesia under the Pakistan-Indonesia PTA, adding Pakistan is in the process of negotiating the FTA's with other countries including Thailand and Iran.

Responding to another question, Prime Minister's Adviser on Parliamentary Affairs Babar Awan said the government has taken various steps for reviving economy, accelerating pace of economic growth, and creating employment in the country.

He said that the government took several special initiatives, which include construction package, textile package, KamyabJawan initiative, Employment generation through China-Pakistan Economic Corridor (CPEC), and Pakistan's Green Stimulus Package to strengthen economy.

He said despite all the constraints around 2.32 million jobs were created during the first year of the government. During the session, the details of the CPEC were also tabled in the house. The Planning Ministry officials said that currently 39 projects worth $25 billion had been started under the CPEC.

Some of them have been completed whereas, work is in progress on some, they added. To a question, in a written reply, the finance minister said that as a result of steps taken by Pakistan Customs being the premier anti-smuggling agency seized smuggled goods worth Rs58 billion in FY 2020-21 as compared to Rs36 billion in the corresponding period.

He said moreover, duty/taxes amounting to Rs341.979 billion have been collected on the traditional transit items, as their volume decreased in transit due to stringent counter-smuggling measures and these items shifted to regular import regime.

The minister said that the federal government has transferred an amount of Rs5, 474 billion from FY 2010-11 to 2021-22 (up-to 30-09-2021) to Government of Sindh under 7th NFC Award. The NA speaker prorogued the house sine die after Pakistan People's Party (PPP) MNA Naveed Qamar pointed out the quorum.

Copyright Business Recorder, 2021