KARACHI: Prime Minister’s Adviser on Finance Shaukat Tarin on Sunday said the government would give the nation "good news" about the stalled $6 billion International Monetary Fund (IMF) programme "soon", reports Geo News.
Addressing the foundation stone laying ceremony of a hospital in Karachi's Naya Nazimabad, Tarin said that the IMF wishes to announce the deal on its own. He said that negotiations this time around, compared to March, have been "much better" and the government even refused certain conditions put forth by the IMF. He said the IMF programmes are "tough" on governments. The PM's adviser said Pakistan can also expect a financial support package amounting to $3 billion from Saudi Arabia "in the next few days".
On Thursday, in an exclusive interview with the state-run Associated Press of Pakistan Saudi Ambassador Nawaf Bin Said Al-Malki said his country will soon disburse cash deposits to Pakistan under the pledged financial assistance after approval of the Royal Court and signing of a Memorandum of Understanding (MoU) in a few days.
“This will happen soon, Insha Allah. There will be an agreement from the Royal Court and the MoU will be signed in a few days for the payment, and also for the deferred oil payment [facility],” the Saudi envoy said.
Tarin, in his address on Sunday, said the government was working on a long-term strategy to strengthen the economy on a sustainable basis. "We need progress that lasts 20 years, not five years," he said.
Tarin said the government stands with the common man and is taking every possible measure to facilitate the vulnerable segments of the society. He reminded the nation that the government had launched the Ehsaas Rashan programme, under which it will provide a discount of Rs1,000 a month, constituting a 30pc subsidy on flour, pulses, ghee, and cooking oil per unit purchase, to 130 million people.
The government has also announced Rs1,400 billion in interest-free loans to four million households, he added. Lauding the leadership of PM Imran Khan, he said the premier took balanced decisions to protect the livelihood of people as well as the economy during the COVID-19 crisis. He said the government is focusing its energies on the construction and agriculture sectors, besides industries, to ensure growth in all areas. The adviser said that significant growth in agriculture production has been witnessed in the last year and the government is trying to increase revenue from 9pc to 11pc and is also looking to increase industrial exports.
He said the Economic Advisory Council has created 14 groups for the first time which gave a comprehensive economic roadmap. With five-percent growth rate, he said that they focused on revenues, which are eight to-nine-percent of the GDP. He said revenue should be at least 20-percent to the GDP. In order to increase the revenue, he said, they have formulated a strategy. The government will enhance tax net, using technology, collecting retail sales and will take growth tax to GDP to 20-percent in the next six to-seven years. He said that there’s 37-percent growth in income tax. This year, the revenue collection, he said, is nine-percent and for the next year they are anticipating it to be 14-percent and if this grows with the same pace in next five years, it will touch the 20-percent target. He said that Imran Khan continued investing on housing. “Our banks were not used to investing in real estate,” he said, adding that after Khan’s initiative the economic activity increased in housing and he also gave boost to the agriculture and export industry. The growth rate came to four-point-five percent which, he said, will be increased.
He said that economic experts say that the economy is lagging behind due to lack of savings and trade imbalances. Tarin noted that 60pc of Pakistan's population is below the age of 30 and 1.5 to 2 million jobs are needed every year.
Speaking of inflation, he said that it is a "global phenomenon". He also touched upon the rapid decline of rupee witnessed over the past few months, saying that speculation (satta) had a hand in it. According to Tarin, the real value of dollar "should be Rs166-167" and Rs8-9 are being lost to speculation. He vowed that the government will tighten the noose around bookies.
He said people are fed up with inflation, adding our purchasing power is less as compared to world but it will increase gradually. He said we will increase petrol prices if they are increased globally.
According to the premier's adviser, cartelisation is also being witnessed in the ghee industry and the Competition Commission of Pakistan has been asked to look into the matter. On the remarks recently made by State Bank of Pakistan Governor Reza Baqir in the UK, where he had said that dollar appreciation can also be viewed to be beneficial as "remittances sent by overseas Pakistanis are on the rise due to the exchange rate [fluctuation]", Tarin said: "The State Bank of Pakistan is an independent institution. They must be approached for comment on the governor's remarks."
