ISLAMABAD: Pakistan's economy is heading in the right direction after two "very difficult" years, Prime Minister Imran Khan said on Friday, as he vowed to tackle the electricity problem so that the country's industries could compete with nations like India and Bangladesh.
In a televised message on the occasion of Independence Day, he said the confidence of the business community on the economy was returning.
"We had a very difficult two years. We didn't have foreign exchange and couldn't pay our debts. We have avoided a huge crisis because we didn't default. But I know it hasn't been easy for the people," he said.
He said that improvement was visible from the recent upsurge in the stock market and revenue collection.
"Despite the pandemic, our tax collection in June exceeded our targets," he said.
Khan said exports also were up, despite the coronavirus crisis that has wreaked havoc on the global economy.
He said the tax collection during the last month remained more than the target.
The Prime Minister said his government gave an unprecedented incentive package to the construction industry which would help to uplift at least 40 other allied industries.
He also said that Pakistan successfully coped with the threat of COVID-19 and it would also help to enhance economic activities.
But Khan warned that "this does not mean we have won this battle" as he urged people to follow the official guidelines.
Referring to the power sector, Khan said Pakistan was generating expensive electricity due to the agreements signed in the past, which resulted in an increase of circular debt.
However, he said that the government had reached an agreement with independent power producers which would lead to a reduction in the cost of electricity production.
Khan said Pakistan's industries could not compete with other nations in the region, like India and Bangladesh, as their cost of production was low due to cheap electricity.
He said that Pakistan was created to become an Islamic welfare state where the law was supreme and everyone had equal rights regardless of their race, caste or religious beliefs.
Khan said the country would realise that dream.
The Prime Minister also showed solidarity with the people of Kashmir, vowing to continue diplomatic and moral support to their struggle for their right to self-determination.