Economy shows signs of recovery: Khawaja Asif

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

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

“We were suffering, but due to insolvency we are now solvent,” he said, adding that the economy is now “breathing” after a period of serious stress.

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

He said inflation and global energy prices remained linked to international markets, adding that expectations of lower domestic fuel prices were limited by global trends. “When people say that oil prices should go down, you have to keep in mind that prices in international markets have not gone down yet,” he said.

Regarding taxes, the Minister of Defense said that the current system contained multiple levels of taxes. “We know there are problems with the tax, there are multiple taxes (25 different types) and they have been incorporated into every purchase,” he said.

Asif further stated that the broader objective should be to broaden the tax base rather than increasing 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 evade taxes. “We need to create an atmosphere where people pay taxes with pride,” he added.

United States-Iran

The defense minister praised Pakistan’s role in helping bring about the recent understanding between the United States and Iran, saying the development had improved the country’s standing internationally and should be celebrated as a national achievement.

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

“These moments in the life of a country come after centuries and become golden moments,” he told lawmakers. “No matter what grievances there are, these moments of joy must be celebrated as a nation, as a single entity.”

The minister said he wanted to thank “the field marshal and the entire team that was working” and added that “the whole country should thank them.” “They managed a situation that was impossible 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 event but did not acknowledge Pakistan’s role.

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

“Our relations with Iran have evolved well in recent months. Sanctions are being relaxed, 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 us 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 on multiple occasions but had failed to obtain assurances 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 for several years. “Many people have complained that we should negotiate with them, and perhaps our approach is impersonal, that we are not approaching them directly,” he said. “But this issue of Afghanistan is directly related to terrorism. Whether it is Balochistan or Khyber-Pakhtunkhwa, the origin of terrorism comes from Afghanistan.”

Rejecting suggestions that Pakistan had not initiated dialogue, the minister said he had personally traveled to Afghanistan twice as part of high-level delegations. “This complaint that we didn’t talk about, I myself went twice. On both occasions senior members of the delegation were there and I had DG ISI with me,” he said. “They would agree to everything, but they would reject anything in writing,” he added.

The minister revealed that the Afghan authorities had asked for financial help from Pakistan during the talks. “They asked us for $10 billion. We agreed, but we told them that the terrorists residing in Afghanistan will not return to Pakistan,” he said. “Besides Kabul, I also met with them in Turkey and Qatar. Negotiations continued day and night, with high-level delegations, but they did not reach any conclusion,” he added.

“We were willing 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, arguing that decisions made during the Cold War and the US-led war in Afghanistan had left lasting consequences. “I’m not saying that our policies of the 1980s and the first two decades of this century, when we were representatives of the United States, were correct,” he said. “We thought we would win the lottery by being a representative of the United States. Pakistan became a battlefield,” he added.

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

The minister called for a practical approach and said Pakistan remained open to further engagement but hoped for tangible results. “My colleagues should start conversations and go there. We are prepared, but let’s not return without results,” he said. “Two generations have already suffered and it seems that generations to come will also suffer.”

Local politics

The Defense Minister, speaking about the security situation in Balochistan, said that the crisis in the province “was not born yesterday” and the responsibility was shared between political forces for many decades.

“Many colleagues have rightly discussed the situation in Balochistan. This situation was not born yesterday; many people have contributed to it,” he said, adding that he would avoid naming people because “it would become partisan.”

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

He rejected the idea that political parties should exchange accusations over the crisis. “Should I accuse them or should they accuse us?” he asked, adding that the roots of the problem went back to the 1950s, when agreements made with tribal communities were subsequently broken. “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 emotionally about the human cost of the conflict between insurgency and counterterrorism, saying he had attended “21 funerals in the last few days.” “Young children are being orphaned. People are told, a few days after their wedding, that they must report to the border,” he said, adding that many staff members are requesting transfers 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 described as hypocrisy across the political spectrum regarding the role of the establishment. “We complain that the centers of power have moved elsewhere, but they have moved thanks to us,” he said.

Asif said: “I get teased by the establishment. Tell me one part that is innocent.” He added that soldiers who die in attacks should not be reduced to political labels. “These are not martyrs of a party; they are martyrs of the army, which we call the establishment,” he said.

The defense minister urged lawmakers to speak “the language of the federation” rather than narrow provincial or partisan politics. “This is all Pakistan House,” he said. “Do not come here with political positions that will cause the common man to lose confidence in this House.”

Asif also accused political parties of selectively forgetting their own dealings with the establishment, while criticizing his opponents for similar conduct.

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

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

The Defense Minister claimed he was revealing this to “lighten the burden of my conscience”, arguing that politicians often ignored their own past conduct when attacking their rivals.

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