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One Year of Miss-Hits Reducing the Cost of Doing Business

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One Year of Miss-Hits Reducing the Cost of Doing Business INDEPENDENT . INCISIVE . ANALYTICAL weeklycuttingedge.com August 16-31 2019 Vol# 15 Issue # 1 Rs. 100 Politics The Senate surprise The Senate no-confidence vote results took everyone by surprise. In the 104-strong House, 53 votes were needed for the first- ever no-trust motion against a Senate chair - man to succeed. But the motion got only 50 yes votes from the 100 present in the House. Nasim Ahmed Pg 05 Conflict Kashmir in turmoil The Indian government’s outrageous move to revoke the special status of occupied Jammu and Kashmir has renewed tension between India and Pakistan. It has not only jeopardized peace in the region but also in the world. The decision has come weeks after US President Donald Trump offered Cover Story mediation on the issue. The offensive proves the struggle of Kashmiris for their right to self-determination has become difficult to handle for India. Shahid Hussain One year of Pg 10 miss-hits Shahid Hussain Page 4 Roundup Our guide to keeping you updated on the latest news and reviews from around the world. Art and Culture. Film. Books. Health. Science Pg 23 Editor: Dr. Niloufer Mahdi Index CUTTING EDGE Reconstruction Page 4 Economics Page 15 One year of miss-hits Reducing the cost of doing business P Education Page 5 olitics Page 16 The Senate surprise Back to square one — but with a change Page 6 Exploration Conspiracy Reko Diq case: Where did we falter? Page 18 Dismantled Kashmir Graft Viewpoint Page 7 NAB’s widening radar Page 19 Rich banks and poor people Trafficking Society Page 8 Page 20 Best guardians Sham marriages in Pakistan Debacle Opinion Page 21 Page 9 The Senate upset The abrogation of Kashmir's special status: Why now? Your View Conflict Page 22 Page 10 Letters to the editor from Kashmir in turmoil our readers Round Up Assessment Page 23 Books & movies, Health, Science Page 11 PML-N’s indictment Page 12 Crisis Robbing Kashmir of special status Cutting Edge Editor Page 13 Peace Dr. Niloufer Mahdi Decisive US-Taliban talks Layout Design Rizwan Ahmad Communication Manager Page 14 Strategy Usman Riaz Reviving a sick economy Correspondence: [email protected] Admin/Marketing Muhammad Atique Circulation Manager Please send your letters to Samsoon Masih [email protected] Ediorial Office: or post to Treet Corporation Limited “Your View”, 2-H, Gulberg-II, Lahore Treet Corporation Limited Phone +92-42-35817141-47, Fax: +92-42-35817138 2-H, Gulberg-II, Lahore [email protected] [email protected] [email protected] Readers are welcome to Printed by Creative Vorks, write for the paper. Plot# 203, Green Light Street, Please include Mughal Park, Bund Road, Lahore. full name and address. For subscription, please contact [email protected] August 16-31, 2019 Economics One year of miss-hits Shahid Hussain Prime Minister Imran Khan has completed one year in office. His critics There is no doubt that the country’s economic outlook has sharply accuse him of taking U-turns on election promises while his sympa - deteriorated over the past year. Growth remained 3.3pc in the last fis - thizers have still high hopes of him despite facing the hardest times of cal year, compared with 5.2pc the previous year. It is forecast to 2.4pc their lives. in the new financial year. Inflation is likely to rise to 11-13pc during fis - His critics term the poor economy his biggest blunder after Pak - cal year 2019-20, according to official forecasts. In its annual budget istan’s currency has lost 35pc of its value in one year of the Pakistan statement, the government said that it had expected a fiscal deficit of Tehreek-i-Insaf (PTI) government. He is taunted for reneging on his 7.1pc this year, down from 7.2pc the previous year. Faced with large promise to fix Pakistan’s economy without taking foreign loans while fiscal deficit, higher inflation and lower GDP growth, the government his government has broken all previous records by borrowing $16b in has unveiled an aggressive plan for revenue generation through newer just one year, the highest ever external borrowing in any fiscal year taxes and increased tax rates in the budget. Subsidies have also been since Pakistan’s creation in 1947. Over the last year, Pakistan’s eco - withdrawn. The foreign exchange rate has been linked to market dy - nomic growth rate has also halved - down to 3.3 percent, the lowest in namics because of which the rupee has devalued significantly in the nine years. Prime Minister Imran Khan is also accused of silencing the government of Prime Minister Imran Khan. Energy costs have also opposition through the National Accountability Bureau (NAB). gone up and the State Bank of Pakistan (SBP) has hiked policy rates. Before blaming Prime Minister Imran Khan for the poor state of Prices of all essentials have almost doubled after the rupee deval - economy, one should look at economic indicators before he took office. uation against the dollar and hike in electricity and gas tariff. Medicine Pakistan’s current account deficit stood at $2.12 billion in July, 20018, rates have increased by 15pc on paper, but they cost much more than according to the State Bank of Pakistan (SBP). The current account it. The government’s policies have only hurt the common people and deficit, a major source of concern for the past couple of years, nar - more adjustments mean more trouble for them. Pakistan’s debt and li - rowed down 72pc to $600 million in August 2018, compared to the pre - abilities skyrocketed to Rs33.3 trillion at the end of 2018, with an ad - vious month because of a notable drop in imports. Imports slowed dition of Rs3.4 trillion in six months. By December, total losses of down 19pc to $4.47 billion in the first month of the PTI government as public sector enterprises had surged to Rs1.6 trillion, a net addition of compared to $5.49 billion in July, 2018. Rs192.6 billion or 13.8pc in six months. Pakistan’s total debt and liabilities had surged sharply and touched Almost all industries and traders in the country are resisting taxa - Rs29.861 trillion or 86.8 percent of GDP till June 30, 2018, indicating tion measures of the government. It has set an ambitious revenue tar - that each individual living in the country owed Rs144,256 on account get of Rs5,555b for the current fiscal year, which is not only difficult to of the increasing debt burden, according to the SBP. External debt and achieve but also has offended businesspeople. liabilities had peaked to $95.097 billion on June 30, 2018, posing a se - It is a fact that Prime Minister Imran Khan had inherited an econ - rious threat to the country on repayment of its foreign obligations. The omy, which was on the verge of collapse but his attempts to revive it external debt servicing consumed $7.479 billion in fiscal year 2017- have only overburdened the common people. He had to receive mas - 18. The SBP data showed that total debt and liabilities had gone up to sive loan to pay back interest on loans received by PPP and PML-N Rs29.861 trillion on June 30, 2018, against Rs25.109 trillion in June governments. The past governments failed to take timely decisions for 2017, indicating that the total debt increased by Rs4.752 trillion in fi - political gains and the result was that almost all national institutions nancial year 2017-18 alone. were making heavy losses when his government took power in August The circular debt in the energy chain, which stood at Rs105 billion last year. at the end of Pervez Musharraf’s tenure in 2008, had ballooned to Despite the setbacks, people have still not lost hope from the gov - Rs1.18 trillion on July 31, 2018. It was despite the fact that the Pak - ernment and believe it will improve its performance in coming days, istan Muslim League-Nawaz (PML-N) government had paid Rs480 bil - because Prime Minister Imran Khan is not corrupt and is working dili - lion to independent power producers (IPPs) in December 2013. Gas gently to improve lives of the common people. As regards NAB cases companies were on the verge of collapse when the PTI came to power. against leaders of the two mainstream opposition parties, all were reg - The indicators prove the party cannot be blamed for the economic istered when they were archrivals. Not a single case has been regis - problems of the country. It can best be accused of not fully realizing tered against any leader in the PTI government, except a drug case the situation and acting fast. Otherwise, all indicators show Pakistan against former Punjab Law Minister Rana Sanaullah, who was arrested was heading to default. by the Anti-Narcotics Force (ANF) on a tip-off from a Western country. 04 August 16-31, 2019 Politics The Senate surprise Nasim Ahmed The Senate no-confidence vote results took everyone by surprise. In the 104-strong House, 53 votes were needed for the first-ever no-trust mo - tion against a Senate chairman to succeed. But the motion got only 50 yes votes from the 100 present in the House. It may be added here that out of the total of 104 senators, 64 belong to the opposition parties and 36 to the government and its allies. Forty-five Senators rejected the motion while five had their votes rejected. Thus, the no-trust motion fell short of three votes. But in actual fact, the defections from the opposition’s ranks totalled 14.
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