PTI’s two year performance. Growth in national income decreased from 5.8% in 2018 to minus 0.4% in 2020. To make it more concrete, our per capita income has decreased from $1652 to $1388. Thus the average Pakistani has seen her standard of living decrease by 16% in 2 years. 1/14
Inflation rose from 3.9% in 2018 to 10.2% in 2020. Sugar, wheat flour, medicines, natural gas and electricity prices have nearly doubled. Taxes on petrol the highest ever. Food inflation is over 15%. This has caused untold misery to the poor and working people. 2/14
An additional 20 lakh people have been rendered unemployed in PTI’s two years. Over 80 lakh people have been pushed into abject poverty, and countless more have become food insecure. House rents and health care have become unaffordable for millions of working people. 3/14
Over Rs 10 trillion have been added to the national debt in two years. More than PMLN did in 5. But PMLN grew the economy (the ability to pay the debt). PMLN also build 11,000 MWs of power plants, miles and miles of motorways and much much more.
PTI has added nothing. 4/14
PTI has added nothing. 4/14
FBR taxes have remained stagnant over PTI’s two years. Last year was the first time in FBR history when one year’s tax collection was lower than the previous year, as PTI failed to collect as much taxes as PMLN did in 2018. The inability to collect taxes in spite of record 5/14
devaluation is a testament to PTI’s mismanagement. The easiest way to increase tax revenues in Pakistan is to devalue. And yet PTI has failed to increase tax revenues in spite of imposing Rs 900 billion of additional taxes. This is PTI’s worst failure in the economic field. 6/14
When you don’t collect taxes and spend on current expenses faster than inflation then you will have record budget deficits. This is exactly what has happened as PTI has recorded the highest deficits both in absolute numbers and as a fraction of GDP. This in spite of cutting 7/14
development expenditure. Another of PTI’s glaring failure is the decrease in exports in both years compared to PMLN’s last year. To not increase exports after 45% devaluation compared to PMLN is mind boggling. Large scale manufacturing has decreased in both of PTI’s years 8/14
in party due to high policy (interest) rate of 13.25% maintained by PTI. This has nealry doubled the government’s debt service payments and devastated the industrial sector. But this policy had been a boon to hot money investors from abroad. 9/14
PTI’s government raised electricity tariffs by over 50% ostensibly to reduce circular debt. But circular debt today is more than double where PMLN left it. Just is July circular debt grew by over Rs 45 billion. A record. In September power sector losses will 10/14
probably rise by Rs 60 billion in a month. Bill collection, which PMLN increased from 84 to 93% has decreased to 80%. T&D losses, which PMLN had brought down from 22 to 18% has increased to 19%. Expect a new tariff increase soon if (and its a big if) we go to the IMF again 11/14
In spite of huge and unnecessary increases in gas tariffs, the financial conditions of Sui companies has taken a serious turn for the worse. The receivables of Sui companies now stand over Rs 1 trillion, and have increased by over Rs 500 in just two years. A sorry record. 12/14
I am happy to note the significant increase in inward remittances in the last two months. I can’t see what the govt did to increase it, but am happy for it and willing to give them credit for it if it sustains. Also happy that BISP/Ehsaas programme has been expanded. 13/14
It would have been better to keep food inflation low which hurts all poor and working people. Pakistan under PTI is seeing a crony capitalism never seen before. From FBR refunds to liquor licenses, rich friends are being favoured at the cost of the people. 2 years wasted. 14/14
