PTI govt's violation of IMF deal behind economic crisis: PM Shehbaz

KARACHI: Prime Minister Shehbaz Sharif blamed Pakistan Tehreek-e-Insaf (PTI) government for bringing an economic crisis to the country after the violations of the International Monetary Fund (IMF) deal, ARY News reported on Friday.

While addressing a gathering of businesspersons and investors here, he said Pakistan was faced with multiple challenges and the economy could only make progress in the presence of political stability.

He said the common man wanted facilities for health and education, service delivery and resolution of everyday problems.

He said in the last one year inflation went high in the country and at the international level, adding the inflation was acutely high even when he formed the government a year ago.

READ: PM SHEHBAZ REITERATES PLEDGE TO BRING MAY 9 RIOTERS TO JUSTICE

He pointed out that political instability was cause of present difficult economic conditions.

The last government broke agreement with the International Monetary Fund (IMF) and then the country was devastated by the biggest climate-induced floods of the century, he mentioned.

The prime minister said the federal government spent Rs 100 billion – Rs 72 billion through the Benazir Support Programme and Rs 20 billion through National Disaster Management Authority – for rehabilitation of flood affectees besides the billions of rupees spent by provincial governments for the same purpose.

Another reason of economic hardship was the rise in international oil prices and the substantial increase in the oil import bill, he remarked.

During COVID pandemic, he said the gas prices were low in the international market but the previous government did not sign agreements for the purchase of gas.

Shehbaz said International Monetary Fund imposed stringent conditions for its loan programme and still his government met all of those conditions and many friendly countries came forward and bridged the financing gaps faced by Pakistan without putting any conditions.

Brotherly countries wished Pakistan to make progress and Chinese government and even their commercial banks rolled over the loans, he said adding the government sincerely tried to avail the IMF programme and the Chinese Prime Minister also cooperated with Pakistan. “We are trying to sign an agreement with IMF as soon as possible.”

He credited businessmen with the continuous economic growth seen over the last decades, adding however, now a major chunk of the investment was made in real estate projects and high rises and the exports had come down.

Talking about political situation, he said in the last one year the country had seen political instability and division in every section of society had shaken the foundation of Pakistan and a particular mindset was created which was harmful for the nation.

What happened on May 9 was unthinkable, Shehbaz Sharif said adding Pakistan was created by Quaid e Azam with great objectives and millions of people migrated and reached Pakistan in battered conditions. Benazir Bhutto was martyred, Zulfikar Ali Bhutto was judicially murdered and Nawaz Sharif was mistreated but Pakistan never faced such instability. “Even enemy cannot think what happened on May 9.”

He said our armed forces faced the enemy with bravery in the wars and now it was unfortunate to see that on May 9, barbaric acts were committed and monuments of ours martyrs were desecrated.