Cornered and severely criticized for its poor economic performance, Prime Minister (PM) Yousuf Raza Gilani plans to give a policy statement about the achievements of the government in the parliament. Finance Minister Dr Abdul Hafeez Sheikh and Secretary Finance Dr Waqar Masood briefed the PM on the performance of economy during the first half of the current fiscal year. According to PM House statement, Gilani said he will give a policy statement in parliament soon about the salient features of the economy and the achievements of the government.
However, the statement did not contain any information on the resolution of the Rs 400 billion inter-corporate circular debt holding the economy hostage. No plan to curb Rs 350 billion power sector subsidies that are expected to increase the fiscal deficit by 2 percent in comparison with the revised official target of 4.7 percent was announced. During the last three years, the government has incurred Rs 1 trillion in power subsidy, one of the main reasons for high fiscal deficit of 6 percent of GDP during the last three fiscal years.
The statement did not mention any discussion on bleeding state owned enterprises (SOEs), like Pakistan Railways, Pakistan International Airlines and Pakistan Steel Mill. To keep loss-making SOEs afloat, the government is heavily borrowing from the domestic banks that has crowded out financing facilities for the private sector.
