Prime Minister's Policy Package

By Raza, Moosi | Economic Review, March 1997 | Go to article overview

Prime Minister's Policy Package


Raza, Moosi, Economic Review


Prime Minister in his speech made no mention about the defaulted loans which stood around Rs.125 billion and the meaningful imposition of agricultural tax. He emphatically ruled out the possibility of slashing defence budget. Government intends to save money from the administrative head where 12 per cent is being spent. How much government would be able to save from it is yet to be seen.

Prime Minister Nawaz Sharif in his policy package has assured giant strides to bail the country out from its worst economic crisis. He launched a campaign "retire debt and save Pakistan" to rid the country of foreign debt and suggested different methods in this regard. Reduction in non-development expenditure, no escalation in petrol or utility prices, full protection to foreign investment and incentives for workers are some other priorities Prime Minister listed to fulfil. Government servants from Scale 1-16 have been provided relief of Rs.300/- per month from March 1, and a 10 per cent rise to Pensioners has also been given. Discretionary quota and fund allocation for development to legislators have been abolished. Minister will retain one car only and the green channel has been re-opened with a ban on the import of luxury items. Sunday has been declared as weekly off. Official guards from the residences of high-ups along with protocol facilities has been removed. No Flag will be hoisted on cars of ministers with some exemptions. Ban on medical treatment abroad on official expenditure that was terminated during caretakers government will continue.

Prime Ministers while depicting the economic scenario as gloomy informed that with only three months to go, a fiscal deficit of Rs.20 billion is on his shoulders. He also mentioned a widening trade gap of $3.6 billion, the exports totalling $8.3 billion lagging behind a huge imports bills $11.9 billion and if balance of payments deficit is taken into account, the shortfall comes to $4.4 billion. According to Prime Minister despite devaluation of rupee by 50 per cent the exports could not rise and the industrial growth graph reached Its lowest ebb during the tenure of Benazir government. He further disclosed that the balance of payments became adverse and in October, 1996 foreign reserves had been left at a bare half a billion dollars and the performance of agricultural sector particularly the wheat and cotton crops was below average as such sugar, onion, potatoes etc. had to be imported.

Nawaz Sharif took over the charge at a juncture when Pakistan's economy is in shambles. Inflation is touching unprecedented heights for last couple of years. The official estimates put to 13.5 per cent whereas the independent economists account it as high as over 20 per cent. The current economic indicators suggest that the target set by IMF are unlikely to be met because of the gloomy economic scenario. The depleted foreign exchange reserves stand around 700 million dollars. IMF has set an annual ceiling of bank borrowing at Rs.70 billion. But it has gone over Rs.56 billion in seven months of the current year whereas it should have been Rs.53 billion. Similar is the position of revenue collection. The machinery has failed and a shortfall of Rs.35 billion is expected.

Enhancement of salaries of Government employees from Grade 1 to 16 and a 10 percent rise to pensioners will cost billions of rupees that would further swell the depleted national exchequer. It would have to be fulfilled through printing more currency which in result would increase inflation in the country. The decision to increase salaries and not pushing up utility prices was not appreciated by IMF. In case Pakistan fails to stand to IMF conditionalities it could face the downgrading by international rating agencies which could hamper the inflow of foreign investment in the country and damage economic credibility of the country.

Prime Minister in his speech made no mention about the defaulted loans which stood around Rs. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Prime Minister's Policy Package
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.