Imran Khan severely criticised the previous governments for raising Pakistan’s debt from Rs6 trillion to colossal Rs30 trillion in the last 10 years alone.
ISLAMABAD: Prime Minister Imran Khan on Wednesday addressed the nation in order to take the people into confidence over his recent visit to Saudi Arabia and steps taken by his government to tackle Pakistan’s economic and political situation.
‘Saudi assistance to help Pakistan reduce IMF burden’
Starting his address with the “good news” about the financial package the government has secured from Saudi Arabia, Imran Khan said: “We were trying for many days to get rid of this burden placed on us of the debt. We had to pay back our debts otherwise we would have been faced with default.”
“We have got an amazing package from Saudi Arabia… which has taken off the burden.”
My Pakistanis, today I am here with a good news for all of you. We were facing really hard times. We were highly pressurized into paying heavy debts. But thanks to Saudi Arab’s extension of assistance, we are out of the pressure. #PMIKAddress
— PTI (@PTIofficial) October 24, 2018
He said had the government approached the International Monetary Fund (IMF) for a bailout directly, it would have to borrow more money that would result in an increased impact on the poor segments of society.
“So our efforts were geared towards getting loans from friendly countries,” he said, adding that now even if the government goes to the IMF, it won’t need as big a package from the lender.
The premier said his government is in talks with two more countries, “and we expect a similar package from them”. If that is secured, he said, the burden of the loans on the salaried class will be minimal.
Khan, whose address came a day after his visit to Saudi Arabia, also announced that Pakistan is trying to play the role of a mediator in the Yemen war involving the Kingdom.
“We are now trying our best to the play the role of a mediator in ending the [Yemen] war,” he said, adding that Pakistan will try to play to its role in ending conflicts in the region and “bring all Muslim countries together”.
‘Pakistan to act as mediator in Yemen war’
The Prime Minister said that Pakistan will act as a mediator in the war between Houthi rebels and Saudi Arabia-led alliance in Yemen.
He said he will try to get Muslim countries together, besides acting as a “mediator” in resolution of conflicts between Muslim countries.
“We are trying our best to act as a mediator to resolve the Yemen crisis,” the Prime Minister said.
‘No corrupt man will go scot-free’
The Prime Minister Imran Khan severely criticised the previous governments for raising Pakistan’s debt from Rs6 trillion to colossal Rs30 trillion in the last 10 years alone.
In a reference to the PPP and PML-N, PM Imran Khan said the opposition parties that are accusing his government of ‘incompetence’ are doing so because they fear that “their corruption will be unearthed when we do an audit of the Rs30 trillion”.
He said the PTI government hasn’t even begun implementing its policies as yet, but is busy “cleaning up the economic mess” of the last 10 years left by the previous governments.
“They just want an NRO [National Reconciliation Ordinance] from us,” he said.
“I want to give them a message: ‘open your ears and hear this: you can come out on the streets. We will give you containers and give you food. You can do whatever you want in the assemblies… [But] no one will get an NRO’.”
“No corrupt person will be let go,” Imran Khan said, recalling that he had been elected by the nation on the promise that he will “put the corrupt people in jails”.
Imran Khan said the country has no future until and unless corruption is rooted out.
“The fake bank accounts… where is all this money coming from? The money is being stolen [from the nation].
“The country’s leaders then have to go and ask for loans abroad… because dollars are laundered out of the country.”
He said the entire burden of loans taken by corrupt officials falls on the nation. Taxes are imposed and prices are raised in order for the country to be able to pay back the loans.
“This is the cycle that is functioning in Pakistan… a small class is growing wealthier, while the masses are becoming poorer.”
In order to break this cycle, Imran Khan said, the government will ensure accountability is carried out “no matter what anyone does”.
He said the cases the opposition parties are accusing the PTI government of backing were all started during the tenures of previous administrations.
“These are old NAB cases against them, which they are using to blackmail [us].”
‘Hope for near future’
Once again urging the nation to not be dismayed by the economic difficulties, he said his government was cracking down against corruption and money laundering.
“Don’t worry at all,” he told the nation, adding that people who tolerate a corrupt leadership, unfortunately, have to pay the price for it.
The government is also taking steps to make exports competitive, create one-window operations to attract foreign investment and facilitate overseas Pakistanis in sending remittances through banking channels.
Coming to his affordable housing initiative, Imran Khan said the government plans on constructing five million homes in the country. He noted that 40 other industries will experience a boost when construction starts for the housing scheme and employment opportunities will be created.
He said the government is making all-out efforts to prevent stolen money from flowing out of the country.
The Prime Minister also said he will announce a special package for poverty alleviation in the country in the coming days.
While closing his address, Prime Minister Imran Khan comparing corruption to “cancer” urged Pakistanis to understand that they will have to face some difficulties for a limited period of time.
“When cancer is operated upon and removed, it causes pain to the patient, but then the person recovers,” he said.
Some people get intimidated by the state of affairs. Listen to me, when a doctor has to perform surgery & remove cancer, it hurts for the time being but in the long run, it cures the patient. We are currently performing the painful surgery. #PMIKAddress
— PTI (@PTIofficial) October 24, 2018
Imran Khan said people abroad are “sitting ready to invest in Pakistan” once corruption is rooted out in the country and the right atmosphere is created.
“The day is not far when instead of asking people for loans for our country, we will give out loans to others,” he concluded with a confident smile.
Stocks rise
Hours after news of the $6 billion Saudi Arabia financial deal, Pakistani stocks appreciated by more than four percent being the highest single day rise since June 2017.
The development also prompted the US dollar to drop by Rs1.89 or 1.4 percent against the Pakistani rupee in the interbank market, and by Rs 2 in the open market.
Experts say the dip is likely to help reduce the burden on loans by PKR 179 billion for the Pakistani government.
The financial experts advise that even though the Saudi relief package has lessened the immediate economic burden but still the government must seek IMF fund to further strengthen and correct the economy of Pakistan.
Imran Khan’s government has meanwhile already entered talks with the International Monetary Fund (IMF) for a smaller fund than required earlier by the country.