CPEC Is Moving in Full Swing Ahead' - Newspaper

‘CPEC is moving in full swing ahead’ - Newspaper - DAWN.
COM 05/01/2022, 1:51 PM
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TODAY'S PAPER | JANUARY 05, 2022
‘CPEC is moving in full

swing ahead’
Afshan Subohi | Published January 3, 2022 - | Updated 2 days
ago
Dr Imtiaz Ahmed,
Economic Adviser,
Finance Division
As the Finance Minister

Shaukat Tarin has been busy
with the Supplementary
Finance Bill 2021, its
explanation and managing
the oppositions’ backlash in
the National Assembly, Dr
Imtiaz Ahmed, Economic
Adviser, Finance Division,
https://www.dawn.com/news/1667246 Page 1 of 17
‘CPEC is moving in full swing ahead’ - Newspaper - DAWN.COM 05/01/2022, 1:51 PM
responded in detail to
Dawn’s questions on future
prospects. The government,
he says is confident that on
the strength of sound
policies both national and
household economy will fare
better in the current year.
Q. Will the economy

improve in the year
ahead? Should people
expect some relief?
A. Yes, of course, we have

very visible signs of
improvement and the
economy rebounded well.
The prudent and active
response of the government
to Covid-19 made the V-
shaped economic recovery
possible, saved the lives and
livelihoods of the people. We
expect good economic
growth in the current as well
as in the years ahead.
The latest estimates suggest

very impressive performance
in the agriculture sector. The
available estimates indicate

cotton growth is 32.8 per
cent (9.4 million bales),
sugarcane8.2pc (87.7m
tonnes), rice 5pc (8.8m
tonnes). Large scale
manufacturing posted 3.6pc
growth during Jul-Oct 2021-
22. During July-Nov, car
production increased 68.4pc
(85,083 unit), tractors by
15pc (22,034 units), truck
and buses by 64.1pc (2,559
units), two/three wheelers by
0.8pc (79,7245 units),
cement dispatches increased
by 6.9pc (4.8m tonnes), oil
sale increased 17.6pc (9.6m
tonnes).
Instead of leaving the poor to

the mercy of the trickle-
down effect, the government
has provided relief through
Ehsaas and Kamyab Pakistan
Programme. The
government tried its best not
to pass on the burden of the
rise of global commodity
prices to the masses.
Q. If the economy is
growing, why does it not
feel like it? Will Pakistan
achieve growth targets?
A. Pakistan is currently on a
high growth path. However,
it is confronted with
imported inflationary
pressure like other nations.
Moreover, the latest
Omicron mutant of the
coronavirus has clouded the
world economy with
uncertainty. Still, there are
strong growth expectations
in 2021-22.
We should not ignore the

fact that the impact of
economic growth on the
general public takes time to
trickle down. The
government’s measures are
geared towards achieving
higher inclusive and
sustainable growth. To this
end, the government has
taken various pro-growth
initiatives.
Q. Do you think it was a

mistake not to make the
access to the generous
stimulus package to the
private sector
conditional on
employment generation
and wage increases?
A. Conditional help at a time

of crisis is never a good idea.
On our part, we announced
the largest ever fiscal
stimulus package of Rs1.240
trillion that covers
Emergency Response
(Rs190bn), Support to
Business (Rs480bn) and
Relief to Citizens (Rs570bn).
It is worth mentioning that

the fiscal stimulus package
was complemented by
liquidity support for the
industry especially small and
medium enterprises (SME)
from State Bank. A
construction package for
low-cost housing and jobs
creation was also announced.
Ehsaas Emergency Relief
Programme and the

incentive package for SMEs
provided support, especially
to poor families. Due to the
apt response to the Covid
outbreak, Pakistan’s
economy did not suffer as
much as others.
Q. How much additional

funds were invested in
the property sector after
the amnesty scheme?
A. Under Section 100D

(special provisions relating
to builders and developers),
till now a total of 2,238
applications have been filed
to avail the scheme, with a
total cost of projects in the
range of Rs556bn.
Q. How do you assess the

economic diplomacy
situation as the West
seems to be
unresponsive and the
East passively reluctant?
A. Pakistan enjoys a very

strategic position
geographically, politically
and economically. It has
strong diplomatic relations
with both the West and East.
Pakistan largest exports
destination is the US
followed by Euro Area and
the UK, and import
destinations include China,
UAE and European
countries.
The remittances are sourced

from Saudi Arabia (26pc),
UAE (21pc), GCC (11pc), UK
(14pc), US (9.4pc) and EU
(9.5pc). Foreign direct
investment is received from
China (41pc), US (9.0pc),
Hong Kong (8.4pc), UK
(7.7pc), Netherland (5.7pc)
and UAE (5.5pc). Due to our
successful diplomacy, 1,775
medical professionals
(doctors/nurses/technicians)
have proceeded to Kuwait for
employment since October,
2020.
Japan and Korea are also

keen to benefit from our
growing labour force. The

Korean government has
decided to lift visa
restrictions on foreign
workers paving way for the
entry of Pakistani workers to
ROK. Pakistan and Japan
signed a memorandum of
cooperation that would allow
skilled Pakistani workers to
secure employment in East
Asian countries.
In Afghanistan, Pakistan
helped NATO and other
embassies staff a safe
passage. In December 2021,
Pakistan hosted a conference
of foreign ministers of OIC
countries to avert a looming
humanitarian and economic
crisis in Afghanistan.
Q. When will the

International Monetary
Fund programme (IMF)
be revived? Will
Pakistan be able to
complete it? How do you
intend to contain the
adverse impact of
stabilisation on
businesses and people?
A. After the completion of

negotiations under the sixth
quarterly review of the
ongoing Extended Fund
Facility (EFF) programme,
the government and IMF
reached a staff-level
agreement on November 21,
2021. It is expected that all
the prior actions under the
said review, which includes
the passing of the
supplementary finance bill
and the State Bank of
Pakistan Amendment bill,
will soon be completed. The
Executive Board meeting is
expected to be held on
January 12, 2022, which will
approve the disbursement of
$1bn under the EFF
programme.
Our commitment and hard

work have supported us to
successfully complete the
stabilisation phase. To dilute
the painful impact of
stabilisation measures, we
have introduced measures in
all the sectors of the
economy to stimulate
growth, with a clear roadmap
of strategic priorities,
business facilitation,
investment opportunities,
revenue and expenditure
plans. In addition, we have
initiated various social sector
development programmes to
improve people’s wellbeing.
In agriculture, various
programs were launched
such as National Agriculture
Emergency Programme,
Agriculture Transformation
Plan, Kamyab Kisan
Programme etc. Agri credit,
fertiliser off-take, production
and import of agriculture
machinery are showing
healthy growth.
In the industrial sector, the

government is giving
monetary and fiscal
incentives including
exemptions on raw
materials, fixed tax schemes

and simplified tax returns,
schemes for risk-sharing and
collateral-free lending for
SMEs, special electricity
tariffs for industrial use, new
auto policy, reduction in tax
on textile products and tax
relief to oil refineries. In
addition, Long-Term Trade
Financing (LTFF 5pc) and
Export-Refinancing Scheme
(ERS 3pc) are being given.
Under the social protection

programme, for 2021-22, the
allocation for the Ehsaas
programme has been
increased from Rs208bn to
Rs252bn.
On the strength of these

measures, we hope the
economy will perform better
in the year ahead.
Q. The salaried urban

middle class, the
political base of the PTI,
has been under crippling
stress. Do you have a
plan to conserve the

support of this vibrant
class in Elections 2023?
A. The government is taking

policy, administrative, and
relief measures to reduce the
impact of imported inflation
on people. The upsurge in
international food prices is
mainly due to the fall in
global food production and
high demand due to the
pandemic and supply chain
disruptions, which have
partially been transmitted in
the domestic market as the
government cushioned it. A
relief package of Rs120bn
was announced to provide a
30pc discount on ghee, flour,
and pulses to 130m people
for the next six months.
The government is highly

committed to conserving the
support of this vibrant class
through various initiatives
like Sehat Sahulat Program,
Kamyab Pakistan
Programme (KPP), Kamyab
Jawan Programme, and

Hunermand Pakistan. We
granted a Disparity
Reduction Allowance of 25pc
of the basic pay, the
minimum wage has been
increased from Rs17,000 to
Rs20,000 in 2021-22, and
around 45,000 low-cost
housing units are under
construction.
Q. When will the China-

Pakistan Economic
Corridor be visibly re-
energised?
A. CPEC is moving in full

swing ahead.
Q. How does the growing

influence of TLP and
likes under the
government patronage
impact the economy
directly or otherwise?
A. We cannot deny the fact

that Pakistan has suffered
from violent protests by
different religious and other
groups in the past. The
recent economic recovery

was a source of unbounded
optimism but the country
has been hit hard by the
agitation.
We should not be in a state

of denial and accept the fact
that the economic bill of
agitations is very high along
with the human cost. It
creates a negative image and
sends a bad message to
investors.
Furthermore, the blockades

disrupt supply chains,
restrict the mobility of
people, damage public and
private property and
suspend business and trade
activities.
Q. What is the single

biggest hurdle on the
path to inclusive
sustainable growth?
A. The macroeconomic
imbalance is the single
biggest hurdle. Import-led
growth has always resulted
in twin deficits which makes

sustaining above 5pc GDP
growth difficult. It causes a
balance of payment crisis as
well as fiscal imbalances.
Published in Dawn, The

Business and Finance
Weekly, January 3rd, 2022
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CPEC Is Moving in Full Swing Ahead' - Newspaper

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‘CPEC is moving in full swing ahead’ - Newspaper - DAWN.

COM 05/01/2022, 1:51 PM

/ SUPPLEMENTS CLASSIFIEDS OBITUARIES

TODAY'S PAPER | JANUARY 05, 2022

‘CPEC is moving in full

As the Finance Minister

Q. Will the economy

A. Yes, of course, we have

The latest estimates suggest

available estimates indicate

Instead of leaving the poor to

We should not ignore the

Q. Do you think it was a

A. Conditional help at a time

It is worth mentioning that

Programme and the

Q. How much additional

A. Under Section 100D

Q. How do you assess the

A. Pakistan enjoys a very

The remittances are sourced

Japan and Korea are also

growing labour force. The

Q. When will the

A. After the completion of

Our commitment and hard

In the industrial sector, the

materials, fixed tax schemes

Under the social protection

On the strength of these

Q. The salaried urban

plan to conserve the

A. The government is taking

The government is highly

Jawan Programme, and

Q. When will the China-

A. CPEC is moving in full

Q. How does the growing

A. We cannot deny the fact

recent economic recovery

We should not be in a state

Furthermore, the blockades

Q. What is the single

in twin deficits which makes

Published in Dawn, The

US spent $14tr on Meesha Shafi says Turkish lira

Pak-Afghan 'No regrets, Stalled but not

Entrenched Cybercrime Forlorn

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