BANGKOK: Thai Prime Minister Paetongtarn Shinawatra on Thursday outlined her government’s policy agenda to parliament, headlined by plans to give away 450 billion baht ($13.4 billion) in handouts to jumpstart Southeast Asia’s second-largest economy.
Political newcomer Paetongtarn’s cabinet was sworn in this month, after parliament elected her Thailand’s youngest premier following the shock removal of predecessor Srettha Thavisin by a court decision.
The polices largely continue ally Srettha’s agenda and that of their populist Pheu Thai party, including debt restructuring and legalizing casinos to draw in investment and more tourists.
Paetongtarn told parliament her government was facing challenges, including structural economic problems, and said the government would act with urgency to stimulate growth.
“If there are no financial and fiscal measures to support economic growth, it is expected that the country’s economic growth rate will not exceed 3 percent per year,” she said.
That would result in the public debt level approaching the ceiling of 70 percent to gross domestic product (GDP) in 2027, she said. Public debt stood at 63.74 percent of GDP at the end of July.
“Therefore, it is a great challenge that the government must urgently restore the country’s economy to quickly grow strongly again,” Paetongtarn said.
While she highlighted the signature plan for a ‘digital wallet’ handout of 10,000 baht ($300) to 50 million people, some of which Paetongtarn has previously said will be given in cash, there were no updates on how or when it would be rolled out.
The government had said this week it would distribute 145 billion baht ($4.2 billion) of the program to support vulnerable groups later this month.
The scheme has been criticized by economists and former central bank governors as fiscally irresponsible, which the government rejects. It has struggled to find sources of funding.
The government insists the policy is necessary to energize the economy, which the central bank expects to grow 2.6 percent this year, up from 1.9 percent in 2023 but far adrift of most regional peers.
Consumer confidence dropped for a sixth straight month to a 13-month low in August, a survey showed on Thursday.
Paetongtarn, 38, made her debut appearance in parliament as Thailand’s second female prime minister. She is the fourth member of her family to hold the top job.
Among those was her father, the billionaire Thaksin Shinawatra, Thailand’s most influential and divisive politician over the past two decades, who has backed the stimulus plan and is a key figure behind her Pheu Thai party.
Thailand’s new PM outlines policies to parliament as consumer mood drops
https://arab.news/pshws
Thailand’s new PM outlines policies to parliament as consumer mood drops
- Prime Minister Paetongtarn Shinawatra highlights signature plan for a ‘digital wallet’ handout of 10,000 baht to 50 million people
- The scheme has been criticized by economists and former central bank governors as fiscally irresponsible, which the government rejects
Will Afghanistan’s pledge against cross-border attacks ease tensions with Pakistan?
- Afghan clerics’ decree banned use of Afghan soil for cross-border attacks on Wednesday
- Latest heavy firing between Afghanistan, Pakistan killed at least 5 people
KABUL: As tensions flare up again between Afghanistan and Pakistan, the Afghan leadership has moved to reaffirm its commitment against cross-border militancy this week in what is seen as Kabul’s attempt to move the needle on peace negotiations, after multiple rounds of talks failed to produce a lasting truce.
The neighboring countries have struggled to maintain a fragile ceasefire after border clashes killed dozens in October, the worst fighting since the Taliban took control of Afghanistan in 2021.
While subsequent talks toward a permanent ceasefire yielded little progress, the temporary truce brokered by Qatar and Turkiye collapsed last Friday, with heavy firing along the Spin Boldak-Chaman border that killed at least five people.
Over the years Pakistan has put much of the blame for the border clashes on the government in Kabul allowing Tehreek-e-Taliban Pakistan — an outlawed armed group, which is separate from the Afghan Taliban — to use Afghan territory for cross-border attacks — a claim that Afghanistan has repeatedly denied.
Afghanistan again pledged to prevent its territory from being used to harm other countries on Thursday, with Taliban Foreign Minister Amir Khan Muttaqi highlighting it as a religious duty, as endorsed just a day earlier by around 1,000 Afghan clerics in a fatwa, or religious decree.
“The fatwa was more political than religious,” Kabul University lecturer Abdullah Awwab told Arab News on Friday.
“I think it was a smooth way out of the pressure put on them by Pakistan and mediators, who were asking for a fatwa against the TTP. The emirate couldn’t issue that, so instead they had scholars issue a fatwa for ordinary Afghans, banning them from jihad abroad.
“The fatwa shows Pakistan that the Taliban can use a fatwa to stop Afghans from joining the war. It demonstrates Kabul’s power and control over its own soil and people — and, at the same time, it shows Pakistan’s weakness in needing to ask Kabul for a religious fatwa.”
Addressing new graduates at a ceremony in Kabul, Muttaqi said the Taliban had not “permitted anyone to carry out military activities in other countries” and that the government had the right to take action against anyone who violated the directive.
“The leaders and elders of this Islamic emirate have pledged that Afghan soil will not be used to harm anyone. All the scholars and religious leaders affirmed that obeying this commitment is necessary for all Muslims,” he said.
“Just as this nation has historically acted upon the fatwas and advice of its scholars, so too will (it) act upon them now. This is our shared duty.”
Asif Durrani, Pakistan’s former special envoy to Afghanistan, said the decree was a “very significant” development.
“Hopefully, the TTP, which owes allegiance to the Taliban’s Supreme Leader Mullah Hibatullah Akhundzada, will now submit to the collective wisdom of the Afghan Taliban ulema and surrender arms,” he wrote on X.
Though the decree answers one of Pakistan’s demands, Afghan political analyst Wasi Baheer said it had “no direct impact” in the conflict.
“Pakistan’s harsh words and threats to Kabul don’t mean much, because the real issue is inside Pakistan,” he told Arab News.
“They cannot simply force changes in Kabul. The main reason talks collapsed in Qatar, Istanbul, and Saudi Arabia is that Pakistan demanded the Taliban act harshly against the TTP — which makes no sense, because it is an internal Pakistani problem. Using force here in Afghanistan will not bring any relief to Pakistan’s security.”
