5 economic things to expect in the first 100 days of the PTI government

[Zibago]

5 economic things to expect in the first 100 days of the PTI government

• Farooq Baloch
  
• 5 hours ago
• Categories:Economy, Government
• Tags:100 Days Agenda, asad umar, bailout, imf, PTI

The Pakistan Tehreek-e-Insaf is in a strong position to form the government after winning a majority in the general elections earlier this week.

But with power, they say comes responsibility. The change of government is taking place at a time when the country is facing challenges, especially on the economic front and the responsibility of fighting them now lies with the PTI.

As Imran Khan’s party prepares to take charge, we expect the following five things:

Pakistan will go to the IMF

Everyone is convinced that the dwindling foreign exchange or dollar reserves will be the biggest challenge for the PTI government. This is the opinion from stock market analysts to economists and international credit rating firms.

Countries across the world need to have enough dollars to be able to pay for about three months of imports.

Pakistan has $9 billion but it needs to have more than $20 billion so it can pay its regular debt installment and afford its imports this financial year (till June 30, 2019).

In his first speech after the results, Thursday, Imran Khan acknowledged that our dollar reserve levels are the biggest challenge. Asad Umar, the PTI’s main candidate for finance minister, said the same. Umar told SAMAA TV that increasing our dollar reserves is the first thing on his to-do list. He is open to all options, including the IMF. The caretaker government has already done its homework on that front and the PTI government can use that option.

Rupee feared to fall further

Asad Umar (besides economists and international agencies) has also opposed the policy of former finance minister Ishaq Dar to artificially strengthen the rupee. After Dar left, the rupee was in a free fall, dropping by Rs20 against the dollar in the last six months.

Analysts say the rupee is constantly under pressure because of our extremely low foreign exchange reserves and will fall further. Responding to a question about his policy on exchange rates, Umar said this should not be a political decision. In other words, the rupee will fall further because he is less likely to intervene.

PTI to depoliticize government businesses (PIA, Pakistan Steel etc.)

There are 200 state-owned enterprises (SOEs) that cost the exchequer Rs650 billion due to mismanagement, politicized leadership and ailing infrastructure. Asad Umar said they will rid these SOEs of line ministries and depoliticize them. The PTI plans to create a wealth fund to transfer ownership of these SOEs and bring in professional managers to restructure them. He said they will not privatize everything because of strategic reasons but he added that they will first fix them and later decide which ones to privatize.

Agriculture to be the focus of policy making

PTI chief Imran Khan had emphasized the importance of agriculture in his post-election speech. Asad Umar seconded this, saying that they would strengthen agriculture and increase its competitiveness. The PTI’s policy will include subsidy optimization, reduction of input costs and agri credit. It will incentivize the sector for value-added exports.

Job creation

The PTI’s manifesto promises the creation of 10 million jobs in its five-year term. The finance minister-in-waiting said that they will work towards this from day one. Employment of youth is critical for poverty alleviation, he said.
https://www.samaa.tv/economy/2018/0...pti-government/amp/?__twitter_impression=true

 

[Samlee]

The Policy To Keep The Value Of Rupee of Dar Was Very Wrong In The First Place.It Resulted In Loss Of $2.5 Billion In Forex Reserves Increase In Debt By $7 Billion and The Mess We See Right Now

 

[Imran Khan]

let the rupee go slowly down not free fall

 

[hassan zohaib]

5 economic things to expect in the first 100 days of the PTI government

• Farooq Baloch
  
• 5 hours ago
• Categories:Economy, Government
• Tags:100 Days Agenda, asad umar, bailout, imf, PTI

The Pakistan Tehreek-e-Insaf is in a strong position to form the government after winning a majority in the general elections earlier this week.

But with power, they say comes responsibility. The change of government is taking place at a time when the country is facing challenges, especially on the economic front and the responsibility of fighting them now lies with the PTI.

As Imran Khan’s party prepares to take charge, we expect the following five things:

Pakistan will go to the IMF

Everyone is convinced that the dwindling foreign exchange or dollar reserves will be the biggest challenge for the PTI government. This is the opinion from stock market analysts to economists and international credit rating firms.

Countries across the world need to have enough dollars to be able to pay for about three months of imports.

Pakistan has $9 billion but it needs to have more than $20 billion so it can pay its regular debt installment and afford its imports this financial year (till June 30, 2019).

In his first speech after the results, Thursday, Imran Khan acknowledged that our dollar reserve levels are the biggest challenge. Asad Umar, the PTI’s main candidate for finance minister, said the same. Umar told SAMAA TV that increasing our dollar reserves is the first thing on his to-do list. He is open to all options, including the IMF. The caretaker government has already done its homework on that front and the PTI government can use that option.

Rupee feared to fall further

Asad Umar (besides economists and international agencies) has also opposed the policy of former finance minister Ishaq Dar to artificially strengthen the rupee. After Dar left, the rupee was in a free fall, dropping by Rs20 against the dollar in the last six months.

Analysts say the rupee is constantly under pressure because of our extremely low foreign exchange reserves and will fall further. Responding to a question about his policy on exchange rates, Umar said this should not be a political decision. In other words, the rupee will fall further because he is less likely to intervene.

PTI to depoliticize government businesses (PIA, Pakistan Steel etc.)

There are 200 state-owned enterprises (SOEs) that cost the exchequer Rs650 billion due to mismanagement, politicized leadership and ailing infrastructure. Asad Umar said they will rid these SOEs of line ministries and depoliticize them. The PTI plans to create a wealth fund to transfer ownership of these SOEs and bring in professional managers to restructure them. He said they will not privatize everything because of strategic reasons but he added that they will first fix them and later decide which ones to privatize.

Agriculture to be the focus of policy making

PTI chief Imran Khan had emphasized the importance of agriculture in his post-election speech. Asad Umar seconded this, saying that they would strengthen agriculture and increase its competitiveness. The PTI’s policy will include subsidy optimization, reduction of input costs and agri credit. It will incentivize the sector for value-added exports.

Job creation

The PTI’s manifesto promises the creation of 10 million jobs in its five-year term. The finance minister-in-waiting said that they will work towards this from day one. Employment of youth is critical for poverty alleviation, he said.
https://www.samaa.tv/economy/2018/0...pti-government/amp/?__twitter_impression=true

To IMF.... perhaps every Pakistani will become more indebted.... Anyway this is a fact but it is also necessary to go to IMF...
I think if they don't want to go to IMF then they must bring all money squashed abroad...

 

[Pakistani Aircraft]

Let's hope PTI survives the first 100 days.

 

[Clutch]

Let's hope PTI survives the first 100 days.

With forked tongues they speaketh!

 

[Sugarcane]

Opposition is quite strong this time, so honeymoon period is very short and no chance for any stupidity. So, PTI must take well thought decision, if IMF is must than tell this to public on day one instead of making some tall claims. And don't try to artificially reduce/maintain dollar rate because of media or opposition pressure like Idiot Ishaq dar.

 

[RegularUnimportantGuy]

But when will they bring money of zardari and nawaz back to Pakistan?
The money we have abroad is more than we need and enough to pay off all our debts

 

[Viny]

Immediate actions would be to meet and warm up relations with middle east, china and europe to open up some sort of lending or investments. IMF will come with more stringent rules.

Mid term work out with China to delay CPEC related payouts
Improve tax collection system, if direct taxes are missing, atleast get bases set for indirect taxes.
Give tax holidays for investments by NRP's and setup startup funds to mobilize youth in taking up business and inventions.
Develop better trade relations with neighbours.

Long term
1. Drastic improvement in education system
2. Water and Energy needs more attention then Kashmir. Kashmir is not going anywhere, but if this is not taken care of Pakistan will be in deep trouble.
3. Utilize CPEC to invite FDI's in SEZ and do something like Make in Pakistan.

 

[FuturePAF]

Pakistanis Media maybe the best way PTI can achieve its goals. Young People make up the bulk of the electorate and through TV and Social Media the PTI can put out educational programs on a number of cultural changes that will help improve their lives ASAP. This First year will be critical to mobilizing people and keep the momentum going to get the larger reforms to work.

For example; Proper waste management and recycling.

When first elected, across the border Modi took up a broom to show the towns and cities of the nation should be cleaned up. It is a humbling action that anyone can do on a daily basis, to clean their area and show they care.

A nation wide clean up blitz over the next 6 months will also be a good symbol for "Naya Pakistan". This can be a bridge until taxes can be collected to employ more people to maintain the cleanliness, but also a way to get people to manage their waste better themselves, so minimizing it on two fronts.

When people learn to be humble enough to clean up after themselves and others, they will be willing to accept taxes and other cultural changes.

PTI and other allied media companies should start producing documentaries on things people can and should do to improve their lives. released in a steady stream it would build up no only campaigns to get people out and active to do, like the billion tree tsunami can become the hundred billion tree tsunami, if every willing household starts planting trees in their areas.

the goal is to motivate people to jointly build a better future. educational programs on the law will also help demystify the law, and teach people what their rights are, and who to contact to address their grievances. otherwise people are too afraid to raise their voices and seek justice. when people see a change, they will be motivated even further. a speedy justice system will also clear the backlog of cases that keep development and progress at a standstill. that needs to be addressed as well.

----------
In the short term an IMF/friendly nations bailout is an absolute need. Some debt forgiveness should also be sought while Pakistan looks to restructure its debt.

 

[Indus Pakistan]

Pakistanis Media maybe the best way PTI can achieve its goals. Young People make up the bulk of the electorate and through TV and Social Media the PTI can put out educational programs on a number of cultural changes that will help improve their lives ASAP. This First year will be critical to mobilizing people and keep the momentum going to get the larger reforms to work.

For example; Proper waste management and recycling.

When first elected, across the border Modi took up a broom to show the towns and cities of the nation should be cleaned up. It is a humbling action that anyone can do on a daily basis, to clean their area and show they care.

A nation wide clean up blitz over the next 6 months will also be a good symbol for "Naya Pakistan". This can be a bridge until taxes can be collected to employ more people to maintain the cleanliness, but also a way to get people to manage their waste better themselves, so minimizing it on two fronts.

When people learn to be humble enough to clean up after themselves and others, they will be willing to accept taxes and other cultural changes.

PTI and other allied media companies should start producing documentaries on things people can and should do to improve their lives. released in a steady stream it would build up no only campaigns to get people out and active to do, like the billion tree tsunami can become the hundred billion tree tsunami, if every willing household starts planting trees in their areas.

the goal is to motivate people to jointly build a better future. educational programs on the law will also help demystify the law, and teach people what their rights are, and who to contact to address their grievances. otherwise people are too afraid to raise their voices and seek justice. when people see a change, they will be motivated even further. a speedy justice system will also clear the backlog of cases that keep development and progress at a standstill. that needs to be addressed as well.

----------
In the short term an IMF/friendly nations bailout is an absolute need. Some debt forgiveness should also be sought while Pakistan looks to restructure its debt.

You know the relative gap between Pakistan and UK has reduced in my lifespan. It might be strange thing to say but the gap is not that great. And it's the small things that matter.

• Sense of civic duty.
• Politeness in public
• Clean your garden
• Take pride. Plant flowers/trees.
• Keep your neighbourhood clean
• Look after yourself. Physical fitness is vital to health of a nation.
• Donate some of your time to help your community.
• Learn new skills/education.
• Nurture strong moral compass.
• Show tolerance to others/diversity.
• Teach everyone to think of Pakistan first. I love IK's "Pakistanio".
  
• Image is all important. Do your best to improve the soft power of your country and build up brand "Pakistan" to the point that it draws a positive response/has stock value.

Many of these things don't cost money. PTI could start mass awareness programme on citzenship.

 

[FuturePAF]

You know the relative gap between Pakistan and UK has reduced in my lifespan. It might be strange thing to say but the gap is not that great. And it's the small things that matter.

• Sense of civic duty.
• Politeness in public
• Clean your garden
• Take pride. Plant flowers/trees.
• Keep your neighbourhood clean
• Look after yourself. Physical fitness is vital to health of a nation.
• Donate some of your time to help your community.
• Learn new skills/education.
• Nurture strong moral compass.
• Show tolerance to others/diversity.
• Teach everyone to think of Pakistan first. I love IK's "Pakistanio".
  
• Image is all important. Do your best to improve the soft power of your country and build up brand "Pakistan" to the point that it draws a positive response/has stock value.

Many of these things don't cost money. PTI could start mass awareness programme on citzenship.

Agreed, Small changes to the society make a huge difference in the moral of the people, and motivate them to endure the struggle and do their best. Giving makes us all richer in the long run.

The British are known for the orderliness; queuing and the like, and the meme of the "keep calm and ...." is a testament to the stiff upper lip of old. Hopefully our people can use this moment to fight our corrupt and selfish impulses and sacrifice for the nation we want to see.

On Three levels the people off all socioeconomic backgrounds can contribute: the working class and youths with their labor, the middle class can improve their skill set to maximize their industries productivity (generating more jobs and revenue for the nation), and the wealthy can come forward to pay their taxes and shift investments from outside the country to back into the country. Investment in land should be made more expensive, and investment in businesses should be made easier to incentivize it.