Thread by @PTIofficial

1)An economy suffering from twin deficit problem with record loss making state institutions, circular debt and rapidly depleting reserves resulting in the biggest balance of payment crisis in its history with a need of immediate bailout and IMF program is anything but stable.

https://twitter.com/dawn_com/status/1163029075302191104

2)In 5 years of PMLN govt, exports of Pakistan decreased in absolute terms & also as % of GDP, current account deficit ballooned from $2.5B to $19.9B per year, fiscal deficit was 6.6% & financial losses of state owned enterprises were 1.4% implying a quasi fiscal deficit of 8%.

3)The savings & private investment rates were lowest in peer countries, the circular debt in power sector which was cleared in full had reached Rs 1200B again in 5 years, capacity payments reached approx Rs 900B, the tariff policy was compromised for election posturing.

4)The currency was kept overvalued & with inevitable minor adjustment before leaving the Govt, this pressure was also passed on the PTI Govt. In 2013 PMLN inherited the economy with external financing need of $10B for current account & debt repayment with net forex reserves....

5)... of more than 3 months and gross reserves three times of C/A deficit. While in 2018 the PTI Govt was facing a three fold requirement of at least $27B with net foreign exchange reserves of less than even a month and gross reserves less than 50% of C/A deficit.

6)With immediate fiscal and monetary policy measures and arranging foreign exchange financing from friendly countries, the PTI Govt saved the country from a possible default situation. Last year current account deficit had decreased by 30%...

7).... remittances increased by 10%, trade deficit decreased by 15%, flow of circular debt which was increasing at Rs 450B per year is reduced to less than Rs 300B & expected to be eliminated by next fiscal year, the external public debt accumulation was also less than last year.

8)The Govt also initiated tax reforms with making simplified tax filling systems, financial data of citizens was compiled, asset declaration scheme given, property valuations revised, tax return fillers increased to 2.5M compared to 1.5M in tax year 2017 showing a 60% increase.

9)Similarly sales tax reforms are aimed at bringing the untaxed sectors & businesses in tax net. To stop the forex reserves haemorrhaging & to give exporters a fair platform the govt rationalised the exchange rate, power tariffs for export sector were made regionally competitive,

10)... sales tax refunds stuck from past years were cleared, phase two of FTA with China was concluded, duty free access for yarn, sugar & rice to China, a preferential trade agreement was signed with Indonesia for 20 Pakistani products. Import duty removed on 1600+ raw materials

11)As a result exports increased in volume and with a J Curve lag of these policy measures, global and regional political factors, in dollar terms exports showed an increase of 14% in July last month.

12)Despite all the stabilisation measures taken the average inflation in first year of PTI Govt is less than PPP & PMLN’s first year.
To reduce the burden on general public, govt allocated Rs 220B for electricity tariff subsidy to 70% low end consumers.

13)The allocation for social protection programs had been nearly doubled and the PSDP allocation is increased to create employment opportunities.
The PTI Govt inherited the worst economic conditions in history by all means and after this initial stabilisation period of necessary

14)and long overdue reforms the Govt’s complete focus is on industrialisation and investment for job creation and sustainable export and domestic productivity led economic growth to make Pakistan a self reliant country with adequate resources to become a social welfare state.

15)It's nothing but intellectual dishonesty on part of Dawn Editors to let such a story with an absolutely misleading headline get published. Despite glaring facts telling the real story of the economic challenges PTI govt faced, to write otherwise is simply yellow journalism.