Economy shows signs of recovery: Khawaja Asif

Defense Minister Khawaja Asif said on Tuesday that Pakistan’s economy had “come out of the ICU” and was now showing signs of recovery, adding that the country could achieve 6-7% growth in the coming years.

Addressing the National Assembly, the Defense Minister said: “Whatever times we live in, it is a time of celebration; we also have successes,” he said, adding that in the first budget that the Pakistan Muslim League-Nawaz government tabled three years ago, the economy was “insolvent” before it was stabilized with support from the International Monetary Fund under “stringent conditions”.

“We were suffering, but because of the insolvency we are now solvent,” he said, adding that the economy was now “breathing” after a period of severe stress.

Asif said he was not claiming that Pakistan had fully recovered, but argued that indicators pointed to gradual improvement. “Our trajectory shows that in one to two years, Pakistan will achieve a growth rate of 6-7%,” he said.

He said inflation and global energy prices remained linked to international markets, adding that expectations of a decline in domestic fuel prices were limited by global trends. “When people say that gasoline prices should fall, know that prices on international markets have not yet fallen,” he stressed.

Regarding taxation, the Minister of Defense said that the current system contained several levels of levies. “We know there are problems with the levy, there are multiple taxes – 25 different types – and they have been baked into every purchase,” he said.

Asif further said the broader goal should be to broaden the tax base rather than increase pressure on existing taxpayers. “The only way is for all 250 million people to pay taxes,” he said, adding that people often find ways to avoid taxes. “We need to create an atmosphere in which people pay their taxes with pride,” he added.

United States-Iran

The defense minister hailed Pakistan’s role in bringing about the recent US-Iran deal, saying the development had strengthened the country’s position in the international arena and should be celebrated as a national achievement.

Asif congratulated the nation on what he described as a major diplomatic success and praised the efforts of Pakistan’s civil and military leadership. “Pakistan’s role has been recognized in the world,” he said, adding that Pakistan played a role in helping achieve this breakthrough.

“These moments in the life of a country come after centuries and become golden moments,” he told lawmakers. “Whatever the complaints, these moments of jubilation should be celebrated as a nation, as a single entity. »

The minister said he wanted to thank “the marshal and the whole team who worked”, adding that “the whole country should thank them”. “They led an impossible situation and made the impossible possible,” he said.

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Asif noted that Indian Prime Minister Narendra Modi congratulated US President Donald Trump on the development but did not acknowledge Pakistan’s role.

Addressing regional implications, the defense minister said recent improvements in Pakistan-Iran relations and easing of sanctions against Tehran could create economic opportunities for Pakistan.

“Our relations with Iran have seen positive developments in recent months. Sanctions are being eased, their oil and gas exports [are increasing]”, he said. “Pakistan can benefit immensely from this change, and the biggest beneficiary will be Balochistan,” he added. “Let’s see how we can proceed in this direction.”

Afghanistan

Responding to criticism that Islamabad had not engaged sufficiently with Kabul, Asif said Pakistan had repeatedly engaged with the Afghan Taliban but had failed to secure guarantees that Afghan territory would not be used for attacks inside Pakistan.

Asif said senior political, military and intelligence officials had held extensive talks with Taliban authorities over several years. “A lot of people have complained that we should negotiate with them, and maybe our approach is impersonal, that we don’t contact them directly,” he said. “But this Afghan issue is directly linked to terrorism. Whether it is Balochistan or Khyber-Pakhtunkhwa, the origin of terrorism comes from Afghanistan.”

Dismissing suggestions that Pakistan had not continued the dialogue, the minister said he had personally visited Afghanistan twice as part of high-level delegations. “This complaint that we didn’t talk, I went there twice myself. Both times senior officials of the delegation were present and I had DG ISI with me,” he said. “They would agree to everything but reject everything in writing,” he added.

The minister revealed that Afghan authorities had requested financial assistance from Pakistan during the discussions. “They asked us for $10 billion. We agreed, but we told them that terrorists residing in Afghanistan would not return to Pakistan,” he said. “Apart from Kabul, I also met them in Turkey and Qatar. Negotiations continued day and night, with high-level delegations, but were unsuccessful,” he added.

“We were prepared to do anything, but we wanted a guarantee that their land would not be used against us. That’s all we wanted.” The defense minister said Pakistan had exhausted diplomatic channels to seek cooperation from the Taliban government.

Asif also reflected on Pakistan’s role in past regional conflicts, saying decisions made during the Cold War and the US-led war in Afghanistan had left lasting consequences. “I’m not saying that our policies in the 1980s and the first two decades of this century, when we were American proxies, were correct,” he said. “We thought we would win the lottery by being a US proxy. Pakistan has become a battleground,” he added.

The minister added that these [Americans] who “came here, used us and then went home,” leaving their weapons and their terror behind. “We are still suffering the consequences, and God knows how long we will continue to suffer,” he added.

Calling for a practical approach, the minister said Pakistan remained open to further engagement but hoped for tangible results. “My companions should hold discussions and go there. We are ready, but let’s not return without results,” he said. “Two generations have already suffered, and it seems that generations to come will suffer as well. »

Local politics

The Defense Minister, speaking about the security situation in Balochistan, said the crisis in the province “did not arise yesterday” and the responsibility for it has been shared among political forces for many decades.

“Many colleagues have rightly raised the situation in Balochistan. This situation did not arise yesterday; many people contributed to it,” he said, adding that he would avoid naming individuals as “it would become partisan”.

He further said that terrorism in Balochistan and KP should be treated as a national issue rather than a party issue. “If the roads are not safe in Balochistan, if the terrorists have made the highways unsafe and if acts of terrorism happen, I understand that it is the collective responsibility of this House,” he said.

He rejected the idea that political parties should trade accusations over the crisis. “Should I blame them or should they blame us? he asked, adding that the roots of the problem date back to the 1950s, when agreements with tribal communities were subsequently broken down. “We need a collective solution. If Balochistan is facing terrorism, then the responsibility is collective and there must be a solution that the people of Balochistan accept,” he said.

Asif also spoke movingly about the human cost of the insurgency and counterterrorism conflict, saying he had attended “21 funerals in the last few days.” “Young children are being orphaned. People are being told, just days after their marriage, that they must report to the border,” he said, adding that many staff seek transfer because they fear being posted to Balochistan and conflict zones.

“These soldiers on the borders of Balochistan and KP are young men with families. Their sacrifices will bear fruit and will not be in vain,” he said.

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The minister also criticized what he called hypocrisy across the political spectrum regarding the role of the establishment. “We complain that the centers of power have moved elsewhere, but they did it because of us,” he said.

Asif said: “I am being mocked by the establishment. Tell me a party that is innocent.” He added that soldiers killed in attacks should not be reduced to political labels. “They are not the martyrs of a party; they are the martyrs of the army, which we call the establishment,” he said.

The defense minister urged lawmakers to speak “the language of federation” rather than straying from narrow provincial or partisan politics. “It’s the entire House of Pakistan,” he said. “Do not come here with political orientations and postures that make the common man in this House lose confidence. »

Asif also accused political parties of selectively forgetting their own relationships with the establishment while criticizing their opponents for similar behavior.

Referring to former National Assembly Speaker Asad Qaiser, he said he had attended legislative meetings at Qaiser’s residence during the tenure of Pakistan Tehreek-e-Insaf, where Pakistan People’s Party (PPP) politicians and intelligence-linked individuals were present.

“Asad Qaiser, whom I respect, in his room, I attended meetings at his house on legislation. The PPP was sitting there, the ISI people sent by the general [retd] Faiz would sit there, and they would monitor our conversations and wherever they wanted, they would decide our direction,” Asif claimed.

The defense minister said he was revealing the information to “ease the burden on my conscience”, arguing that politicians often ignore their own past behavior when attacking their rivals.

“When you beat your chest and taunt us, do you forget that under your roof, the Anti-Money Laundering Bill and the NAB Act were discussed there under the watchful eye of the people sent by General Faiz at the time? he said, adding: “That’s our problem. In politics there are gray areas, but we are expanding them with new levels of hypocrisy.”