Pakistan ‘drowning’ in debt: Prime Minister Shehbaz Sharif warns

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Pakistan “sinks” debt and it is the duty of the new government to “sail this ship to land,” Prime Minister Shahbaz Sharif said on Wednesday after leading the first cabinet meeting since assuming the office.

Cabinet 34-member Sharif – Mixed experience and fresh blood – was sworn on Tuesday after several days of delay, with the Chairman of the Sadiq Sanjrani Senate gave an oath to the new ministers after President Arif Alvi forgave himself from the ceremony.

I consider it a war cabinet because you are fighting against inflation, unemployment (and). This is a war against all problems …,” Sharif said in his speech to the cabinet, which was aired by government media.

He said that the previous government failed to overcome the problem and emphasized to provide convenience for the nation, especially poor families, through the “comprehensive and continuous” consultation process.

He thanked the Allies for joining the Cabinet and appreciated the ability of cabinet colleagues to solve the problem.

Today is an important day because we have succeeded in serving constitutionally and legally expelling the corrupt PTI government, “he said, thanking to the coalition members.

This alliance will serve people in the midst of different political visions from the parties.” He said that the cabinet was “a combination of experience and youth”.

Talking about the problem, he said that lack of power and major debt was one of the main problems faced by the country. “The country is immersed in debt but we have to take the boat to the beach,” he said.We must struggle with challenges such as poverty, unemployment, and inflation when the previous government failed very sadly in his struggle against difficulties, “he said.

Dozens of warehouses and factories are closed due to the lack of electricity and gas. We need to immediately find a solution,” he insisted, added that growth, not politics, was a priority for the cabinet now.

In the world of economic outlook released in Washington, the IMF projected the current Pakistani transaction deficit to reach USD 18.5 billion this fiscal year. Previously it has projected a USD 12.9 billion deficit for FY2022.

This estimates that Pakistan requires gross external financing of more than USD 35 billion in the current fiscal year at a transaction deficit of 5.3 percent of GDP at FY2022. The IMF also raised inflation estimates for Pakistan to 12.7 percent on average for current fiscal from the previous projection of 9.4 percent.

Sharif warned that opponents conducted a negative campaign against the government, which must be responded to with facts. “We need to respond to toxic propaganda based on facts, not on the basis of lies.” He also said that corruption was at its peak in the government of Imran Khan which had to be developed by the cabinet.

He also called for unity between the federation units and mainly talked about the poor Balochistan Province. “We need to focus on all four provinces, especially Balochistan. We also need to overcome problems in other provinces,” he said.