PPP accuses govt of thrusting Pakistan into a deep ‘borrowing trap’
PPP accuses govt of thrusting Pakistan into a deep ‘borrowing trap’: The senator while commenting on the Economic survey released by the government said that “This must be the only government which is happy about a trade imbalance.”
The PPP senator said that “by putting everything on the China-Pakistan Economic Corridor (CPEC), the government is sitting back and explaining away all its missed targets and growing deficit.”
“Instead of even pretending to balance its budget, this government is going headlong into the next financial year by deepening the huge annual current account deficit” she said, adding: “This is unprecedented even for this government which has run the treasury on empty.”
According to Ms Rehman the Annual Plan 2017-18, budget would be marked with incessant borrowing, more indirect taxes, a surreal deficit and skyrocketing debt.
She said that “It is projected that our current account deficit will reach a staggering $10.4 billion from $7.2bn last year. This is mainly because our trade deficit amounts to almost $26.9bn which was roughly $16.5bn during the PPP’s last year in government. Estimates suggest that this year’s current account deficit rose by 42pc compared to last year. How is this not raising any red flags for the government?”
Ms Rehman further remarked that PPP had continuously pointed out the dangerous downward trajectory that the country’s economy was taking. “Since this government came to power, our current account deficit has constantly been increasing. Trade deficit and borrowing have reached a record high, exports are down, remittances are falling and the foreign direct investment is plummeting”.
The PPP senator also criticised the government’s track record and failed campaign promises, saying: “Exports have declined by $3bn, external debt has increased by $6.3bn, domestic debt has increased by 78.5pc, there is a decline of 2.8pc in remittances and circular debt has reached over $4bn in the span of four years.”
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