ISLAMABAD: The government continues to boast about what it called “historically positive economic indicators” which have brought about long-term economic stability in the country, but its detractors describe them as mere eyewash which have nothing to do with the life of the common man.

This time appreciation has come from none other than Prime Minister Nawaz Sharif from London, who praised Finance Minister Ishaq Dar and his team for “unprecedented economic returns for the country”.

The country’s foreign exchange reserves, which stood at $6.8 billion in June 2013, have crossed the $23bn mark.

“The present highest foreign exchange reserves in Pakistan’s history speak volumes of the success of our government’s economic policies. Our policies are aimed at achieving long-term economic stability and sustainable growth,” the prime minister was quoted as saying in a press statement issued here on Friday.

It said the prime minister had lauded the government’s economic team led by Mr Dar for achieving milestones in the economic sphere and putting the country on the path of sustainable economic growth and prosperity.

Mr Sharif particularly spoke high about the upward tax collection and said the Rs3,104bn revenue generation represented a 60 per cent increase in last three years, “which is an average increase of 20pc per year annum”, against the average increase of mere 3pc during the period between 2008 and 2013.

The prime minister claimed that the next two financial years would see more economic growth and enhanced investment in energy and infrastructure sectors. “Our government is already executing Rs900bn infrastructure projects, which include $1.5bn private investment,” he added.

Achieving the status of emerging market by Pakistan was a reflection of “prudent financial and economic policies” of his government, which were recognised by international financial institutions and agencies, he said, adding: “Success of our government’s vision is not confined to rhetoric rather vividly reflected in the economic growth.”

However, a couple of economists Dawn spoke to said that the government’s claim about enhanced foreign exchange reserves and tax collection was nothing more than a farce.

Dr Qaiser Bengali, a known economist, said he was surprised to see how the government had been making noise about its tax collection. He said had there been a genuine increase in tax collection it would have positive impact on the life of the common man.

“Over 80pc of the tax collections are indirect which means it’s the general masses who are paying these taxes, a measure which has severely affected their buying power,” Dr Bengali said.

About the foreign exchange reserves, he said this was the first-ever government in the country’s history which had taken loans to improve its rating to borrow more loans.

Dr Ashfaq Hassan Khan, who has worked at various positions in the finance ministry and is currently teaching at a university, said the prime minister’s appreciation of Senator Dar was “a family affair”, hence shouldn’t be taken seriously.

He said that 75pc of the foreign exchange reserves, which the government claimed to have amassed, were borrowed funds. As far as tax collections are concerned, Dr Khan said there was absolutely no increase and the government was only playing with the figures to paint a positive picture.

For example, Dr Khan said, the government was including advance taxes of oil and gas sectors in the tax collection, which it would be adjusting in the years to come.

Published in Dawn, July 2nd, 2016