Tight economic situation.

• Position: Pakistan's economy - Report

Prime Minister claims that the government has created financial discipline for the first time in the history of the country whereas current account is in surplus for the first time in last 17 years. International media is praising Pakistan on its handling of coronavirus. Government of Pakistan gave an economic stimulus package of Rs. 1,240 billion mainly to the business community by deferring their electricity bills and repayment of loans and providing concessional loans from the State Bank for retaining their employees. In addition, government also announced a wheat procurement package, which supported the agriculture sector and disbursed billions of rupees through Ehsaas program to over 15 million deserving people in a transparent and efficient manner.

In a recent media interaction; Minister for Finance has said that economy is moving in the right direction, government has controlled its expenses and in first four months of the current fiscal year, government's income is more than its expenses, which is unprecedented. This positive development has happened due to higher tax collection and resultantly, government didn't take new loan since July 2020. Two years back, Pakistan had the current account deficit of over USD 20 billion, which present government has first reduced it to a level of USD 3 billion in first two years of its rule and now current account is in surplus of Rs. 752 billion. As per government that they have controlled the current account balance matter permanently.

Large scale manufacturing has increased by 5 percent after a long time, cement production is also all time high, out of 20 million tons of cement production; 13 million tons have been sold in domestic market while remaining is exported. Production of cars, bikes, fertilizers, textile products is on the rise. The encouraging thing is that, Pakistan's textile sector has export orders till December 2020. Foreign exchange reserves with the State Bank are over USD 13 billion as of today. FBR has collected more than Rs. 1,340 billion in the first four months, which is more than its target. In addition, FBR has refunded more than Rs. 128 billion in FY 2020-21, which is 100 percent more than what it had refunded in FY 2019-20.

There is zero borrowings from the State Bank, no supplemental grants being given, defense budget is capped, and expenses of Prime Minister House and Presidency have been slashed. A lucrative package has been given to the construction sector; which...