For the first time since independence, Cabinet members were forbidden to
take loans from Pakistani Banks.
State Bank of
Pakistan made an
autonomous organisation.
For the first time one billion dollars of debt retired.
From a dismal growth rate of 2.3% in 1992-93 which it inherited, the PPP
government raised the economic growth to 5.2% in 1995-96. The growth
rate plunged to 3. I % in 1996-97 after the removal of PPP government, a
figure further lowered to 1.3% in the budget.
Fiscal defcit in the last year of PPP government i.e.1995-96 brought
down to 5%, from 8% of GDP which it had inherited.
Tax revenue which were only 7.2% of GDP in 92-93 was raised to 14. I %
of GDP in 1995-96. Last year the tax to GDP ratio again fell to 10.2%.
Due to investment-oriented policies, more than 3 billion dollars of
direct foreign investment flowed into the country.
As against this the present government has scared away foreign
investment through its mishandling of the IPP issue and freeze on
foreign currency accounts.
A day before the PPP government was dismissal, the stock index was at
1500 points. It sank to 900 points in August 98.