Miftah Ismail exposes a shocking comparison between Nawaz regime and PTI govt
Lahore, 31st May: Pakistan Muslim League Nawaz’s (PML-N) finance team and its former Finance Minister, Miftah Ismail have released a shocking document unveiling the incumbent government’s shortcomings during its three-year rule.
In the document, obtained by Baaghi TV, PML-N’s Miftah Ismail highlighted the comparison between the economic stability in Pakistan during the PTI rule and that of the PML-N.
Following are the distinguished comparisons:
GDP Growth During PML-N:
PML-N attained a GDP growth above 4% in each of its 5 years’ rule. There was 5.8% GDP growth in PML-N’s last year in 2018, which is the highest recorded in 16 years.
GDP Growth During PTI:
On the other hand, PTI has achieved the average GDP Growth of 1.8% in 3 years, which is below the population growth rate.
There was 2.1% growth in 2019 and -0.5% GDP growth in 2020, which is the lowest since 1952.
Hence, the GDP amount under the PML-N rule in 2017/18 amounts to $313 billion, while, under the PTI rule in 2020/2021 amounts to $296 billion, with a 7.5% higher population rate.
EXPORTS
The report said that under the PTI rule, the exports were reduced from the level attained by PML-N in 2018 in both 2019 & 2020 despite a 35% devaluation of the Pak rupee. It may also be noted that there was no coronavirus pandemic in 2019.
This year, even though global trade in home textiles has increased by double digits, Pakistan’s exports after three years and huge devaluation will only surpass the level attained by PML-N of $24.8 billion by 1%.
Yes, it’s just 1%. In spite of all the narrative building, all PTI will achieve after 3 years is a 1% increase.
However, during PML-N’s last year, exports increased by 13%.
DEBT
Regarding the country’s debt, the document stated that PTI has increased debt by 52% from Rs 24,952 bn to Rs 38,005 bn since Jun 2018.
PTI has increased debt by over Rs 13,000 bn in less than 3 years, which is more than half of all the debt added by all governments in 71 years.
Meanwhile, PML-N added Rs 2100 billion debt per year on average and built power plants, motorways and CPEC.
Through reliable sources, it has come to Baaghi TV’s notice that PTI is adding Rs 4300 billion per year and building nothing.
Even the few but much-publicized ‘Langarkhanas’ are built by Seylani Welfare Trust, which also provides the food.
External debt has increased by $14.9 bn since Jun 2018, while, the PML-N increased it by $18 billion in 5 years.
FISCAL DEFICIT
The average fiscal deficit (% of GDP) has been found to be 8.5% in the PTI government versus only 5.6% during the PML-N rule.
The total fiscal deficit has been recorded over Rs 10,000 bn in PTI’s 3 years vs only Rs 7,893 bn in PML-N’s 5 years
TAX
According to sources, the PML-N government doubled FBR tax revenues from Rs 1.9 trillion in 2013 to Rs 3.8 trillion in 2018.
On the other hand, PTI failed to grow FBR revenues in its first 2 years.
FBR revenues recorded in 2019 & 2020 have been found to be Rs 3.8 trillion (same as PML-N’s last year)
Hence, PTI is on track to miss the tax target for 2021 by Rs 400 bn. This year the increase is again likely to be less than inflation plus growth, which means just a nominal increase and no increase in real terms.
Tax to GDP ratio under PTI rule, the true measure of tax collection efforts, has remained below PML-N’s number every year including this year.
INFLATION
Sources revealed to Baaghi TV that the SPI Inflation has consistently remained above 13% every week since 25 February 2021.
Food inflation has remained above 10% almost every month for the last 2 years
However, during the PML-N’s last year rule, inflation was only 3.9%. Food inflation remained low throughout PML-N’s 5 years.
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