PML-N's poor economic policies cost Pakistan $20 billion: Shaukat Tarin

• Shaukat Tarin says PML-N government cost Pakistan $20 billion.
• Says government was forced to accept tough IMF conditions such as high power tariffs, but it will no longer be the case.
• Says PML-N is criticising the PTI's growth rate but it's own era's growth rate was due to loans borrowed.
  

ISLAMABAD: Federal Minister for Finance and Revenue Shaukat Tarin on Thursday said the poor economic policies of the PML-N government cost Pakistan $20 billion.

The current government inherited an economy in a shambles, with high inflation and massive circular debt, he said, while addressing a virtual press conference along with Minister for Energy and Petroleum Hammad Azhar and Minister for Industries and Production Makhdoom Khusro Bakhtiar.

Tarin said that during the PML-N government, the rupee was artificially propped up against the dollar which led to a record-high current account deficit — $20 billion.

Tarin said the government had to approach the International Monetary Fund to support the deteriorated economy and accept tough conditions such as high power tariffs.

However, now the government's focus was on providing relief to the masses in the upcoming budget for 2021-22 and that is why it was conveyed to the IMF in recent talks that the electricity and gas prices would not be increased, he said.

Tarin said former finance minister Miftah Ismail of the PML-N, during his tenure, had raised the petroleum development levy up to Rs30, while the present government had reduced it by Rs2-3.

Today the circular debt is declining and the government will take more steps to further reduce it, he added.

'Growth in PML-N era was due to loans borrowed'

The finance minister said that despite the threats to the economy posed by the coronavirus pandemic, the government had brought the GDP growth rate close to 4%.

He said the PML-N had painted a picture to suggest the country's growth was not at the level it should have been. "The increase in growth rate in the PML-N tenure was due to loans they borrowed," he said.

"Everyone was witness to what Ishaq Dar did with the economy," he said, referring to the PML-N era finance minister.

He said it was the government's top priority to alleviate poverty, by promoting skill development practices among four million families, besides providing them housing facilities and health cards.

'FBR harassment will be brought to an end'

Tarin said the government's goal is to increase tax revenue by 20%.

"We will not impose tax after tax, we will only broaden the tax base," he explained, adding that FBR's "harassment" will be brought to an end.

'Will take GDP growth to 6% in 2023'

Addressing the conference, Azhar said that when PTI took the reigns of power, the country was close to defaulting.

He expressed the confidence the government will take the GDP growth ratio to 6% by 2023.

Azhar said that the data presented by the PML-N in their pre-budget seminar was "not accurate".