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Provision of employment to youth is a big challenge for govt, says Asad Umar
ISLAMABAD – A startling economic information was yesterday shared with the National Assembly that per capita debt stands around Rs188,000, in the current estimated national population.
“Total public debt stood at Rs39,859 billion at June-end 2021 and with an estimated national population of 211.93 million, the per capita debt is around Rs. 188 thousand,” according to the figures shared by the Ministry for Finance and Revenue, during the question-hour.
Minister for Finance and Revenue Shaukat Tarin, who is working now as advisor to PM, in a written reply over a question related to the exact amount of debt against each Pakistani, informed the House that per person debt had reached to 188,000 rupees.
However, the Minister for Finance and Revenue argued that instead of measuring debt per capita a better way to measure level of debt is through Debt-to-GDP ratio. It was further justified that the countries throughout the world measure their debt levels through this ratio, as it accounts for the size of the economy compared to population levels.
“It is important to note that Pakistan has witnessed one of the smallest increases in its debt to GDP ratio during the pandemic. Global public debt to GDP ratio increased by 13 percentage points, whereas, Pakistan’s debt to GDP ratio witnessed minimal increase of 1.7 percentage points in 2019-20,” he said, mentioning that the debt to GDP ratio in fact reduced by 4 percentage points in 2020-21 indicating lower debt burden.
JOB OPPORTUNITies
The House was informed that a total of 2.32 million jobs were created during the first year of the present government.
According to the Labour Force Survey 2018-19, this government has created jobs despite economic constraints.
‘Special Survey for Evaluation Socio-Economic Impact of COVID19 on Wellbeing of People’ indicated that out of 20.6 million people who lost their jobs/could not work during April-July, 2020, 18.4 million started working during August-November 2020, depicting a V-shaped recovery,” according to the written reply by Minister for Planning Asad Umar.
Asad Umar said that provision of employment to youth is a big challenge, but stands on high priority on the agenda of the present government. The government has taken various steps for reviving the economy, accelerating the pace of economic growth and creating employment in the country. The federal government has taken various initiatives/packages in addition to provincial initiatives to boost economic activities, mitigate the adverse impact of COVID-19 on employment level and generate employment opportunities for the youth.
RUPEE DEPRECIATION
To a question about Pakistan’s rupee value, the Minister for Finance and Revenue in a written reply revealed as on 18th October, 2021, PKR closed at 172.78 against US Dollar, registering its all-time low.
“The value of Pakistani rupee has depreciated against the US Dollar during the current fiscal year from PKR 157.54 per US Dollar as of end June 2021 to PKR,” he said, in a written reply, adding that 172.78 per US Dollar as on 18th October, 2021, reflecting a depreciation of 8.8 percent this is in contrast to PKR appreciation of 6.7 percent in FY-21. “During first two months of the current fiscal year (FY-22) the current account has recorded a deficit of US$ 2,290 million compared to a surplus of US$ 838 million in the same period last year,” he said.
It may be noted that since May-19, Pakistan has adopted a market based flexible exchange rate system, where the exchange rate is determined by market demand and supply conditions.
“Under the new system, role of SBP’s interventions in the Fx market is limited only to avoid disorderly market conditions and build Fx buffers without suppressing an underlying trend,” according to the reply.