Opposition terms PM Imran Khan's subsidy package 'too little', 'acceptance of failure'

Opposition leaders lambasted Prime Minister Imran Khan's  Rs120-billion relief package for 20 million most-vulnerable families of Pakistan soon after the premier announced the package in his Wednesday address to the nation

The Opposition called the move an "acceptance of the government's failure" and "nothing but a joke".

PPP Chairman Bilawal Bhutto-Zardari, taking to Twitter, shared an image representing the percentage of the increase in prices of certain commodities.

The PM's package is "too little for 200 million people," he wrote.

"PM's package is nothing but a joke. PM claims few families will benefit from a 30% discount for only 6 months on ghee, flour & lentils. In 3 yrs, ghee increased [by] 108%, flour 50% & gas 300%," he wrote. "30% is too little, too late for 200 million ppl facing historic inflation, poverty & unemployment," Bilawal wrote.   

Following suit, former senator and PPP leader Sherry Rehman termed PM Imran Khan’s address to the nation a “bizarre speech”, and called the premier the “Blame Minister of Pakistan”.

'Bizarre speech'

Taking to Twitter, Rehman criticised the prime minister and said that she chose the name "blame minister" for him as he has been shifting blames on the former governments and international markets for the rise in inflation and prices of oil, gas, and other essential items.

She said that global oil prices were higher during the PPP’s tenure but local petrol prices were “half” as compared to the current petrol prices.

“Bizarre speech by the Blame Minister of Pakistan. Says all the unprecedented inflation, tsunami of oil, gas prices, essentials is becoz [sic] of the past govts & international markets. PPP faced higher global oil prices over 130 $ per barrel but local petrol was half of today prices,” wrote Rehman.

She continued: "Basically he took no responsibility for the economic crisis, skyrocketing inflation, unprecedented public debt, plummeting rupee and just said 'get ready for more price hikes.' And oh, a 'relief package' for 2 crore out of 22 crore people. Which package? Ghee prices rose as he spoke."

'Acceptance of the failure'

Meanwhile, PML-N leader and former Sindh governor Muhammad Zubair said that offering subsidies on the products is the “acceptance of the failure” that the government couldn’t control the prices.

Zubair, in a conversation with Geo.tv said that it seemed like it is August 2018 when PM Imran Khan has just taken office and he was making announcements for the implementation of the plan put forward by him regarding the economy.

“He must have forgotten that it is the time for his return, not the time when he assumed office,” said Zubair.

Speaking about the subsidy announced by PM Imran Khan, Zubair said that someone has to pay for the discount offered to the people.

“In the end, the government will cover it by increasing taxes or taking more loans or printing more notes which will increase the inflation,” he said.

Zubair admitted that the prices have increased in the international market but the premier should have given an explanation that every country in the region is importing all the same items that Pakistan is importing.

Why is it Pakistan that is the most affected when it comes to the overall inflation, Zubair asked.

He said that there is only one justification and the reason behind the inflation in Pakistan and that is the government’s “incompetence, unprofessionalism, and lack of capacity to deliver”.

Referring to PM Imran Khan’s comparison of Pakistan with India over the petrol prices, Zubair said that the PM should have taken into account the difference of income per capita.

Meanwhile, PPP leader Shazia Marri said that PM Imran Khan was compelled to speak to the nation because of the protest the Opposition parties, along with the citizens, are recording.

She said that the economic murder of people is being committed.

“There is a historic rise in the unemployment and inflation in Pakistan and a historic depreciation of the rupee,” said Marri, adding that today’s address was a forced address where PM Imran Khan “tried to make excuses”.

She said that 68% of families in Pakistan are unable to afford basic food items.

Akin to other party leaders, Ameer Jamat-i-Islami Syed Siraj ul Haq said that the premier "did not accurately portray the facts in his speech."

"If you want to compare inflation with the United States and Europe, then mention the facilities available to the people of these countries," Haq wrote on Twitter. "Inflation and unemployment in Pakistan are higher than [other countries] in the region. The government's boat is sinking and it is itself responsible."

PM announces Rs120bn subsidy package for 20m most vulnerable families

Addressing the nation, the premier said that considering that the masses are undergoing a tough time due to the inflation in the country, the government is introducing a package for 20 million families, which will — in turn — benefit 130 million Pakistanis.

The premier said that under the package, interest-free loans of up to Rs500,000 will be provided to city-dwellers to start businesses, while a similar amount of loan will also be provided to farmers.

The prime minister further added that the government has asked the construction sector to increase the salaries of workers, while a health-insurance programme will be introduced in Punjab from December.

"Under the package, four million families will be able to build houses without interest," the PM said, adding that Rs1,400 billion have been set aside for the Kamyab Pakistan Programme (KPP) 2021 with the aim to provide opportunities to the deserving and uplift 3.7 million households across the country.

'Govt's policies prevented economy from collapsing'

At the beginning of his address, the premier thanked China and Saudi Arabia for financially assisting Pakistan and said that had the country become a defaulter, the rupee would have depreciated more and inflation would have skyrocketed.

The prime minister also shed light on the coronavirus situation across the world and said that, unlike other countries, the Pakistani government made strategic decisions related to the imposition of a lockdown and saved factories from closing down and agricultural activities were continuing as usual.

"[Due to the government's policies], cotton production had increased by 81%, while record-breaking motorcycle and tractor sales were witnessed in the country.

"Urea was used 23% more by the farmers, indicating that the conditions were getting better. And when the farmers are happy, the production increases, and in return, it benefits the country," he said.

In construction, there are Rs600 billion projects underway, as we had incentivised it, he said, adding that in the industrial sector, the large scale manufacturing had increased by 13% — more money and more jobs in the country.

"We had [allowed] construction industry to operate; we tried to save our exports as if they would have stopped, then the dollar would have gone up against the rupee," he said.

"Our policies prevented the economy from collapsing," he said. "The World Bank, the World Health Organisation, and the World Economic Forum, all praised our policies amid the pandemic."

'Petrol prices will be further increased'

Speaking about the ongoing inflation in the country, he told media outlets that while it is their right to criticise the government, they should opt for a balanced approach when reporting on inflation.

Citing the example of Turkey, Germany, China, and the United States, the premier said that after 2008, these countries had also faced historic inflation.

"What can we do if inflation is being driven because of global factors?" the premier questioned as he cited the examples of oil and gas prices worldwide.

"Yes, we are facing inflation in the country but you should also look at what the government is doing to alleviate the situation," he said, adding that due to factors which is not in the hands of the government, petrol prices will have to be increased further.

"If we do not increase the price of petrol, the deficit will increase, the PM said, adding that global oil prices have risen to 100%, while the price of petrol in India is Rs250 per litre.

"Oil and ghee prices have doubled worldwide, and since we import these items, what can we do about the prices?" he said.