Budget 2012-13 Special; Islamabad Press Club In View of Humayun Akhtar Khan

Overview

Economic condition of the country is on a swift decline. The economic review in 2011-12 is proof of this situation. Economic development reached 3.7% though it was expected to be 4.2%. In agriculture target was 3.4 and it reached a mere 3.1%, in the industrial sector it was 1.8% instead of the expected 2%, a more disappointing figure was the decrease in investments from 13% to 8.4 %. Prices of commodities increased to an 11% as a whole.

Given the performance of this government, what do you think should a common man expect of the new budget?

In the previous 4 to 5 years the people have witnessed immense desolation. The economic condition has gone from bad to worse. No sector is growing and development seems like fantasy. Fiscal deficit has seen continuous decline. There is increase in unemployment and deteriorating security issues and government has not been able to deliver necessary facilities.

Tomorrow when the budget will be announced, we will see that a huge amount will be spent on development projects since this is the last budget of the ruling coalition. The problem is that Pakistan is so badly bound in foreign debt that printing money will serve no purpose. Inflation will escalate and the economy will plummet.

Government promised that they will not borrow from State Bank but we saw that 4500 billion was loaned from this entity. Similarly, commercial banks were supposed to provide 300 billion rupees but 600 billion was borrowed. This plainly means that currency was printed, when after a while the problem will arise when payment will be required in dollars. That time will cause a lot of difficulties for the country and we will have to borrow in order to pay IMF.

Source: Faisla Aap Ka – Samaa TV – 31 May 2012

 

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