ISLAMABAD: A high-level meeting chaired by Prime Minister Shahid Khaqan Abbasi was held on Tuesday to brief the Chief of the Army Staff General Qamar Javed Bajwa regarding the current economic state in the country. During the high-level meeting, military’s concerns over “sky-high debts” and “growing external imbalances” were highlighted.
According to reports, the COAS was detailed about the progress of the China-Pakistan Economic Corridor (CPEC) and its intended benefits for the country. External sector problems also remained a topic of discussion during the high-level meeting, reports confirmed.
In addition, PM Abbasi also reviewed the security situation in the country.
During the briefing, the COAS was apprised that the economic crunch was a result of the expansionary projects that are currently underway. He was also informed that these pressures would remain for a few more years. Moreover, the government informed the army chief that it is of utmost importance that energy and infrastructure constraints are removed before the economy is put on track to achieve a growth rate of 6 percent or more.
According to reports, secretary planning briefed the military leadership about the true picture of the CPEC, its financial burden, and its long-term effects on the economy.
The meeting took place after the COAS had raised concerns over the deteriorating external debt situation of the country. He called upon the concerned authorities to introduce measures to broaden the tax base and bring in changes in the financial discipline to break the “begging bowl”.
Recently at a seminar, the COAS addressed the public bringing the relationship between security and the economy into the limelight. Later, the Inter-Services Public Relations director general also expressed concerns that if the economy isn’t too bad, its performance isn’t too good either. This triggered a strong reaction from Interior Minister Ahsan Iqbal.
The interior minister insisted that the government has ‘no tensions with any institutions.’
“They [armed forces] are our front line, and we have the utmost respect for all of the institutions that are protecting our motherland,” Iqbal said.
Iqbal on Tuesday also stated that the government would not go to the International Monetary Fund (IMF) in the election year, adding that those portraying a doomsday scenario about the country’s economy were ill-advised and playing in enemy’s hands.
Moreover, Finance Minister Ishaq Dar on Monday also tried to dispel the impression that the country was facing an economic emergency and will need to return to the IMF soon because of depleting foreign exchange reserves. He also urged commenters to take a holistic, rather than an isolated view, of the public debt position.