PM Imran Khan with “New Pakistan” and Challenges

Pakistan Prime Minister Imran khan a “Populist” and “Nationalist” leader is doing the toughest job as a Prime Minister in the World. Pakistan is a country, which is hugely hit with an already existing Economic crisis facing another COVID – 19 Crisis together. Pakistan with a GDP of just $300 Billion has been badly hit with an approximate loss of 3.3 trillion Pakistani rupees ($20 Billion) in the ongoing Coronavirus crisis, said Minister for Industries and Production Hammad Azhar.  

PM Imran Khan got elected to power with an ambitious “Naya Pakistan” slogan which throws an enlightening picture of rapidly growing & new Pakistan. He loudly came up with the policies for his future Government. Imran Khan expressed his inspiration is to build Pakistan as a humanitarian state based on principles of the first “Islamic state of Medina.” He promised to all Countrymen that his future Government would prioritize poor and backwards of the State firstly and all policies will be geared towards elevating their standards of living. In April 2018, he eagerly won a sinking ship and showed Pakistanis several dreams and goals that are yet to be delivered by Imran Khan.

Where Nawaz Sharif left the looted Country in 2018

Mr Khan assumed office as the Prime Minister of Pakistan on 18^th August 2018 after PML –N led Nawaz Sharif rule. Who had a high share in looting and destroyed Pakistan through a series of Corruption followed by Ex-President Asif Ali Zardari (Known as Mr Ten per cent of Pakistan). The situation was so critical as newly Elected PM Imran Khan had to announce a financial emergency in Country and desperately asked funds to run the Country. Khan’s party – Pakistan Tehreek E Insaaf (PTI) reform agenda are confronting driving Pakistan’s economy on a path to sustainable high growth.

According to the PTI, the crux of the problem laid almost all areas ranging from flawed energy policies, spiralling fiscal deficit, grossly low tax to GDP ratio, multiple bailouts by international agencies, underinvestment in education, health and skills sectors. The PTI also identified antiquated governance and all-pervasive Corruption and lack of political leadership as the reasons for the long-term decline in the economy.  The PTI said that business, as usual, is not sustainable, as Pakistan will become the “poor man of the 21^st century” with per capita debt of PKR 145000 per Pakistani.

PM Khan brought practically everything new in “Naya Pakistan”

PTI massive economic reform program envisaged the creation of a fiscal space of 9 per cent of GDP with a 5 per cent increase in tax collections, 2 per cent decrease in unnecessary expenditure with 2 per cent reduction in losses of PSE’s. Besides, the economic reforms vision projected a high growth rate of 6 per cent, inflation aimed to be brought down to 7 per cent, fiscal deficit set to be brought down to 4.5 per cent and tax revenues expected to be raised by 15 per cent and a four-fold increase in welfare spending. Major Structural reforms were envisaged in the energy sector, expenditure reform, revenue collection and human capital development.

The Railway Ministry aimed to be replaced by a Railway Board, a completely autonomous board to manage the PSE’s as in Malaysia’s Khazanah. An expenditure emergency was announced with all Governor houses, and PM house was to be converted to places of public use and expenses of President to be cut to half. PM’s 100 Luxury Cars were put on auction through PTI Government got over $600k. The number of Federal Ministries were reduced to 25, no development funds of Parliamentarians and elimination of all discretionary funds. Thus, Khan’s administration had a massive reforms drive.

Recently, PM Imran Khan announcement over a cut of a total of 30 rupees in the Petrol prices provided a considerable relief to all Countrymen who were suffering from high inflation for a long time. It is an indication of economic recovery to some extent. Oppositely, PM Modi led Indian Government has recently hiked Petrol prices 7^th time in a consecutively on 13^th June despite crude oil price have fallen and are at the lowest level in 15 years.

Along with, PM Khan’s administration has distributed over 120 Billion rupees to the most affected and deprived section of the Society through Direct Cash Transfer scheme during the Coronavirus pandemic. And, Mr khan offered help to the Indian Government in reaching with the direct benefits to approx. Over 400 Million Indians are living below the poverty line. On the other hand, Pakistan Supreme Court has urged Khan’s administration to take the Coronavirus seriously as Government did not announce a complete announce as of now. In reality, the Government wants to impose the Lockdown entirely. But Still, it is hesitant to do so as Imran Khan is pretty aware with the fact that the economy cannot afford Lockdown hit anymore. Pakistan has no leverage left to risk its economy as it may take the Country in a Bankruptcy situation.