Economy showing signs of recovery: Khawaja Asif

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

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

“We suffered, but because of insolvency we are now solvent,” he said, adding that the economy was now “breathing” after a period of severe stress.

Asif said he did not claim that Pakistan had fully recovered, but argued that indicators pointed towards gradual improvement. “Our trajectory shows that in one or two years, Pakistan will reach a growth rate of 6-7%,” he said.

He said inflation and global energy prices remained linked to international markets, adding that expectations of lower domestic fuel prices were constrained by global trends. “When people say that petrol prices should come down, be aware that the prices in the international markets have not come down yet,” he noted.

On taxation, the defense minister said the current system contained several layers of taxes. “We know there are issues with the tax, there are multiple taxes – 25 different types – and they’re built into every purchase,” he said.

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

USA-Iran

The defense minister hailed Pakistan’s role in helping forge the recent understanding between the US 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 major diplomatic success and praised the efforts of Pakistan’s civilian 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. “Whatever grievances exist, these moments of jubilation should be celebrated as a nation, as one unit.”

The minister said he wanted to thank “the field marshal and the whole team that worked”, adding 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 had congratulated US President Donald Trump on the development but had not acknowledged Pakistan’s role.

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

“With Iran, our relations have seen a good development in the last few months. Sanctions are being eased, 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’s see how we can continue in this direction.”

Afghanistan

Responding to criticism that Islamabad had not sufficiently engaged with Kabul, Asif said that Pakistan had repeatedly engaged with the Afghan Taliban several times, but had failed to secure guarantees 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. “A lot of people complained that we had to negotiate with them and maybe our approach is impersonal, that we don’t approach them directly,” he said. “But this Afghanistan issue is directly linked to terrorism. Whether it is in Balochistan or Khyber-Pakhtunkhwa, the origin of terrorism comes from Afghanistan.”

The minister dismissed suggestions that Pakistan had not pursued dialogue, saying he had personally traveled to Afghanistan twice as part of high-level delegations. “This complaint that we did not talk – I myself went twice. Both times senior delegation members were there and I had DG ISI with me,” he said. “They would accept everything but would refuse anything in writing,” he added.

The minister revealed that Afghan authorities had sought financial assistance from Pakistan during the discussions. “They asked us for $10 billion. We agreed, but we told them that terrorists residing in Afghanistan will not come back to Pakistan,” he said. “Apart from Kabul, I also met them in Turkey and Qatar. Negotiations would continue day and night with high-level delegations, but there was no conclusion,” he added.

“We were ready to do anything, but we wanted a guarantee that their land would not be used against us. That was 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 taken during the Cold War and the US-led war in Afghanistan had left lasting consequences. “I’m not saying that our policies in the 1980s and the first two decades of this century, when we were American proxies, were correct,” he said. “We thought we would win a lottery by being an American proxy. Pakistan became a battle ground,” he added.

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

Calling for a hands-on approach, the minister said Pakistan remained open to further engagement but expected tangible results. “My companions should hold talks and go there. We are ready, but do not return without results,” he said. “Two generations have already suffered, and it looks like future generations will suffer too.”

Local politics

Speaking on the security situation in Balochistan, the defense minister said the crisis in the province was “not born yesterday” and responsibility for it was shared across political forces over 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 individuals because “it would become partisan”.

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

He rejected the idea that political parties should trade accusations over the crisis. “Should I accuse them or should they accuse us?” he asked, adding that the roots of the problem stretched back to the 1950s, when agreements made with tribal communities were later 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 insurgency and counter-terrorism conflict, saying he had attended “21 funerals in the last few days”. “Little children are being orphaned. People are told days after their weddings to report to the border,” he said, adding that many staff are requesting transfers because they fear deployments to Balochistan and conflict zones.

“These soldiers standing on the border of Balochistan and KP are young men with families. Their sacrifices will bear fruit and will not be wasted,” 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 centers of power have moved elsewhere, but they have moved because of us,” he said.

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

The defense minister urged lawmakers to speak “the language of federation” rather than narrow provincial or party politics. “This is the whole house of Pakistan,” he said. “Don’t come here with political leanings and attitudes that cause the common man to lose confidence in Parliament.”

Asif also accused political parties of selectively forgetting their own relations with the establishment while criticizing opponents for similar behaviour.

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

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

The defense minister claimed he revealed this to “lower the burden on my conscience”, arguing that politicians often ignored their own past behavior when attacking rivals.

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