News Analysis |
Prime Minister Imran Khan addressed the nation on the eve of Wednesday and assured that he was there to bring the country out of the current economic crisis. He was addressing a ceremony in connection with the launch of the Naya Pakistan Housing Programme. Confident Khan maintained that he will present a roadmap before the nation listing steps the government will take to stabilize the economy. “Have courage, there is nothing to worry about,” the prime minister told the audience, assuring the nation that the turbulence in the economy won’t last long.
PTI-led government is being severely criticized by the opposition and some segment of Pakistani media for not being able to manage economic affairs properly. The PML-N-led opposition has bashed at PM Khan after his government decided to seek a loan from the IMF. PM Khan had maintained always that his government won’t seek aid under any circumstance. But miserable economic conditions compelled PM Khan to do contrary to what he had promised for.
PML-N Miftah Ismail criticized the policy on some technical grounds. “PTI will soon announce a policy to build 5 million pucca houses over its 5 years. I hope it succeeds but let me give a reality check.
PM Khan was seemingly irked to see the response of media and opposition after the announcement of seeking help from the IMF. He said an impression had been created in the last 48 hours “as if the sky is going to fall [or] the day of judgment is upon us”, he instead sought to explain the issues faced by the economy.
Like many analysts in Pakistan, PM Khan maintained that the current economic crisis has been created by the previous governments. He said the previous governments had taken loans recklessly, which has resulted in the country’s debt ballooning from Rs6 trillion to Rs30 trillion in the past 10 years alone.
Read more: PM Khan set to fulfill ‘5 Million homes’ promise
Moreover, PM Khan reiterated that the government is seeking funds from external sources only for the short term, as the economic reforms and austerity measures initiated by his government “will take six months to show results”. Furthermore, while giving details of the Naya Pakistan Housing Programme, the prime minister revealed that five million affordable houses will be constructed in five years targeting the low-income segments of society.
We have launched our most ambitious, landmark housing policy of building 5mn homes in 5 yrs. InshaAllah this will provide affordable houses for our less privileged strata of society, plus 6mn jobs, create demand in 40 industries directly involved in house building & attract FDI.
— Imran Khan (@ImranKhanPTI) October 11, 2018
Initially, the pilot project will be launched in seven cities which include Faisalabad, Sukkur, Quetta, Dera Ismail Khan, Islamabad, Gilgit, and Muzaffarabad. According to details, the scheme will bring long-due prosperity in the country, he said, adding that at least 40 other industries connecting with housing would also be set in motion as soon as construction would start.
The PML-N-led opposition has bashed at PM Khan after his government decided to seek a loan from the IMF. PM Khan had maintained always that his government won’t seek aid under any circumstance.
A special housing authority would be established in three months to serve as one window for all construction-related formalities. A task force would look after the housing project until then. A National Financial Regulatory Body would also be set up in two months to remove hurdles in the financing of construction of houses, the premier announced.
Read more: PM Khan to launch “Pakistan Cleanliness Movement” next month
PML-N Miftah Ismail criticized the policy on some technical grounds. “PTI will soon announce a policy to build 5 million pucca houses over its 5 years. I hope it succeeds but let me give a reality check. The total number of pucca houses in ALL urban areas of Pak together is 49,54,218. So PTI’s plan is to build more houses than exist in” he said.
PTI will soon announce a policy to build 5 million pucca houses over its 5 years. I hope it succeeds but let me give a reality check. The total number of pucca houses in ALL urban areas of Pak together is 49,54,218. So PTI’s plan is to build more houses than exist in 1/4
— Miftah Ismail (@MiftahIsmail) October 9, 2018
in all urban areas of Pakistan. How much money do they need for this: $180 billion. That’s enough for about 13 Daimer-Basha dams. That’s Rs 24,300 billion. That’s more than the taxes we expect FBR to raise in the next 5 years. 2/4
— Miftah Ismail (@MiftahIsmail) October 9, 2018
If every single paisa saved by every Pakistani over the next 5 years (total national savings) is devoted to build 5m houses, even then we will be short. If every single paisa of private investments over the next 5 years that would go towards investing in shops, restaurants 3/4
— Miftah Ismail (@MiftahIsmail) October 9, 2018
factories, power plants, schools and hospitals etc were to all be diverted towards building 5 million new homes even then the money won’t be enough. How can grown men and women devise or believe such a plan is beyond me. But then again I do ordinary maths, not NayaMaths. 4/4
— Miftah Ismail (@MiftahIsmail) October 9, 2018
It is yet to be seen how the PTI will come out of the ongoing crisis and deal with the worst economic condition of Pakistan. However, criticizing and blaming the incumbent government for the failures of previous government is unjust. The abstersion of previous economic indiscretion will definitely take some time.