KP CM vows Long March, blames Federal Govt for economic woes

F.P. Report PESHAWAR: Chief Minister Khyber Pakhtunkhwa Muhammad Sohail Afridi, addressing a press conference at the Chief Minister's House in Peshawar, said that two 'clowns and cartoons' of the federal government had been placed on television with two objectives: to divert public attention from the October 4 Long March and to distract people from the government's corruption. He said the October 4 Long March would take place under all circumstances, with people turning out in large numbers to stage a peaceful protest. The Chief Minister said the federal government had failed to demonstrate performance in any area and that even those who had brought the present government to power had realised that an incompetent government had been imposed on the people. Comparing the performance of the former PTI government at the Centre with that of the incumbent government, he said that Pakistan's GDP growth rate had stood at 6.1 percent during Imran Khan's tenure but had fallen to 2.3 percent under the present government due to its incompetence. He said per capita income had been $1,700 during Imran Khan's tenure, while the present government had still been unable to restore it to that level. He said that even Afghanistan, despite the conditions created by war, was achieving GDP growth of 4.3 percent, while its per capita income had increased from $355 to $430. Muhammad Sohail Afridi said Pakistan's total debt, which had previously stood at Rs43 trillion, had increased to more than Rs99 trillion over the past four years. He said the country's poor had been pushed to the brink, with 44.5 percent of the population, equivalent to 120 million people, now living below the poverty line. He said that while 120 million people were struggling to secure two meals a day, a plane worth Rs11 billion had been purchased. He added that Pakistan's exports stood at $30 billion against imports of $70 billion. He said that when the issue of exports and imports was raised at a meeting of the National Economic Council, the response was that remittances were coming into the country. The Chief Minister said large numbers of young people were leaving the country. He said the government's policy appeared to be to further increase the proportion of the population living below the poverty line from 44 percent to 70 percent. Muhammad Sohail Afridi said such a large number of people would come out on October 4 that the authorities would not be able to handle the situation. He warned that any attempt at an 'adventure' would draw a public response. He said Khyber Pakhtunkhwa was the only province where the government had come to power through the strength of the people and not on anyone's 'crutches'. The Chief Minister criticised television commentators whom he described as 'cartoons', saying that they were telling the people that they were 'insects'. He said there was intense anger among the people of Khyber Pakhtunkhwa and that the 'cartoon network' was creating hatred among the public. The Chief Minister further said that Pakistan Muslim League (N) was planning to create unrest in the country. He called upon the people to come unarmed on October 4 and exercise their right to peaceful protest. He said that anyone found carrying an object capable of causing harm would be apprehended and handed over to the police. Such a person, he said, would not be considered part of their movement and would instead be associated with Pakistan Muslim League (N) or those who had brought them to power. Muhammad Sohail Afridi once again made it clear that the October 4 Long March would take place under all circumstances and would remain peaceful. He said the people would exercise their democratic right to peaceful protest and that no provocation or act involving damage or harm would be permitted. Advisor to the Chief Minister on Finance Muzammil Aslam, addressing the joint press conference, said that as questions were increasingly being raised about Khyber Pakhtunkhwa's performance, it was important to assess the province's economic performance in the context of Pakistan's overall economic situation and the performance of other provinces. He said the assessment of any government should be based on core indicators including economic growth, exports, investment, employment, development expenditure, health, education and fiscal management, and that Khyber Pakhtunkhwa's performance should be evaluated comparatively across these indicators. The Finance Adviser said that when the Pakistan Democratic Movement (PDM) government came to power in 2022, Pakistan's total debt stood at Rs43.5 trillion, or Rs43,500 billion. By June 30, 2026, it had increased to Rs99.5 trillion, or Rs99,500 billion, representing an increase of approximately Rs56 trillion in around four years. By comparison, he said, Khyber Pakhtunkhwa had frequently been portrayed as being heavily indebted, whereas the province's total debt stood at Rs634 billion in 2024 and had increased to Rs809 billion over two years. He added that the provincial government had established a dedicated account for debt servicing, which currently held approximately Rs250 billion. Taking this earmarked amount into account, he said, would provide a more accurate picture of the province's fiscal position. Muzammil Aslam said exports were the backbone of any economy, yet Pakistan's exports had declined rather than increased over the past four years. Pakistan's exports stood at $31.8 billion in 2022, compared with approximately $30.8 billion in 2026, meaning that exports remained around $1 billion below the 2022 level even after four years. He said that while ambitious export targets had been announced, the desired increase in exports had not materialised in practice. On foreign direct investment, the Finance Adviser said that despite major claims regarding investment and visits by delegations from different countries, Pakistan received only $486 million in foreign direct investment during the last year. He said this was among the lowest levels recorded in the country's history. He added that the government had entered four International Monetary Fund programmes during the past four years, with discussion of a fifth programme for the following year, yet foreign direct investment had not increased substantially. The Finance Adviser said Pakistan's poverty situation was also a matter of concern. According to World Bank estimates, the poverty rate had reached 44.7 percent, meaning that approximately 120 million people out of a population of around 250 million were living below the poverty line. He noted that this number was larger than the total population of several countries. On unemployment, he said official government figures placed the unemployment rate at 7.1 percent, while estimates by economist Dr Hafiz Pasha put it at approximately 22 percent, meaning roughly one in every five people was unemployed. He said approximately 2.8 million people had left Pakistan in search of employment since 2022, describing this as one of the major episodes of outward migration in the country's history. Muzammil Aslam said the government described the country's current foreign exchange reserves of $26.8 billion as a historic high, but stressed that the composition of those reserves also needed to be examined. He said approximately $8 billion comprised deposits from Saudi Arabia and another $8.2 billion comprised deposits from China, while funds had also been obtained from Kuwait. He added that over the past two years, the State Bank had purchased approximately $15 billion from the open market. He said that whereas the State Bank had previously supplied dollars to the market, it was now purchasing dollars from the market to build reserves. The Finance Adviser said Pakistan's economic growth had averaged approximately 2.3 percent over the past four years, compared with an average growth rate of around 4 percent over the country's nearly 80-year history. He said low economic growth had a direct impact on employment and poverty. The industrial sector, he added, had also remained under significant pressure, with industrial growth averaging only 1.6 percent over the past four years, compared with more than 10 percent during the final two years of the Imran Khan government. Similarly, he said, GDP growth had exceeded 6 percent during the final two years of that period, compared with approximately 2.3 percent currently. On inflation, Muzammil Aslam said the cost of essential commodities and other expenditures had increased by approximately 80 percent since 2022. He said the price of diesel had increased from approximately Rs150 per litre to Rs409 per litre, while the cost of electricity, including taxes, had risen from approximately Rs18-20 per unit to around Rs60 per unit. He added that the price and availability of flour had also become a major challenge for ordinary citizens. He said flour shortages had also emerged in Punjab, while restrictions on inter-provincial movement of wheat were now affecting the country as a whole. The situation in the wheat and agriculture sectors, he said, was a matter of concern. Turning to Khyber Pakhtunkhwa's economic performance, the Finance Adviser said that when the current provincial government was formed following the February 2024 elections, the province's development budget was approximately Rs70 billion. By June 30, it had been increased to approximately Rs240 billion. He said the Sehat Card programme had been close to becoming non-functional but was restored by the provincial government, which had allocated approximately Rs125 billion for the programme over the past three years. Muzammil Aslam said the provincial government had also improved fiscal management. He cited the example of a period when resources had been insufficient to meet the salaries of government employees, compared with the current position in which the province was able to make salary payments four months in advance. He said approximately 38 percent of the provincial budget was being allocated to the health and education sectors combined, representing the highest share among the provinces. The Finance Adviser said law and order remained a major fiscal challenge for Khyber Pakhtunkhwa. Three years ago, the provincial police budget stood at approximately Rs65 billion, whereas it had increased to Rs191 billion in the current financial year. He said that even in absolute terms, Khyber Pakhtunkhwa's police budget was higher than Sindh's, despite Sindh having approximately 70 percent higher revenues than Khyber Pakhtunkhwa. He said this demonstrated the significant share of its limited resources that Khyber Pakhtunkhwa was allocating to law and order. Muzammil Aslam said any assessment of Khyber Pakhtunkhwa's overall performance must take into account governance, budgetary priorities, development expenditure, health, education, law and order and fiscal management. He said international institutions including the World Bank, Asian Development Bank and International Monetary Fund regularly published assessments of Pakistan's national and provincial economic conditions. If any report by an international institution established that Khyber Pakhtunkhwa had underperformed another province on a key economic indicator, he said, such evidence should be brought forward. The Finance Adviser said that despite constrained resources and a severe law and order situation, Khyber Pakhtunkhwa had increased development expenditure, restored the Sehat Card programme, allocated a substantial share of its budget to health and education, increased resources for police and law and order, and strengthened fiscal management. He said assessments of the province's performance should therefore be based not on political statements but on verifiable data, budget documents and reports issued by credible national and international institutions.