Ex-Finance Czar Expresses Fear of 'Skyrocket Inflation' as Debt Increases by Rs4.5 Trillion - Capital TV

June 4, 2023

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Ex-Finance Czar Expresses Fear of ‘Skyrocket Inflation’ as Debt Increases by Rs4.5 Trillion

Anum Razzaque

LAHORE: Former Finance Czar of Pakistan, Shaukat Tarin, expressed fear of a “skyrocketing inflation” as the government increased the debt by Rs4.5 trillion.

Addressing a press conference along with the Secretary of Pakistan Tehreek-e-Insaf (PTI), Shaukat Tarin said, “During the tenure of Ishaq Dar, the local currency devalued by Rs34 within two or three days.”

“Before taking over, Dar claimed that before he departed for Pakistan, the rupee was starting to gain its position, and when he was about to return, the debt decreased by Rs1200 billion,” Tarin reminded.

However, he stated that today when he is in power, the greenback is appreciated by Rs34. When we were ousted, the dollar was standing at Rs183, which closed today at Rs266.

Tarin said at the time of the no-confidence motion, the local currency was at Rs178.

“They raised the foreign debt by Rs4.5 trillion which is caused by the devaluation of the rupee,” Tarin said.

He further stated that the reserves of the State Bank of Pakistan (SBP) are bottomless and standing at $3.7 billion, which is the deposit amount of UAE, Saudi Arabia, and China, Pakistan’s account is empty.

Meanwhile, Tarin urged people to prepare for a barrage of new taxes as the International Monetary Fund (IMF) pressures the government to impose new taxes worth Rs3.2 trillion, and as “the government gives in to IMF’s demands easily.”

He criticized the government for surrendering to the IMF and predicted that the situation will cause a wave of inflation.

He was critical of the previous government, PMLN, for leaving a circular debt of Rs1.3 trillion, and said PTI had pushed it to Rs2.4 trillion.

However, he added that the current circular debt is surging by Rs123 billion per month and has reached Rs3.2 trillion.

He said, “The Sensitive Price Index (SPI) is standing at 32%, it seems to go on 45-50%, while the Consumer Price index (CPI) is expected to surge by 32-35%.”

Hence, Tarin said that people will see a skyrocketing surge in inflation and unemployment.

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