Govt to seek loan from IMF on ‘own terms’: Dar

By
Muhammad Omer Hayat
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28
154

In clear contradiction to Pakistan Muslim League-Nawaz’s (PML-N) pledge in its election manifesto not to seek any foreign loans, Federal Minister for Finance Ishaq Dar on Thursday said formal talks would be held with a delegation of the International Monetary Fund (IMF) regarding a bailout plan.
The revelation was made by the minister while addressing a post-budget press conference at the federal capital. Minister for Planning and Development Ahsan Iqbal, Secretary Finance Waqar Masood and other officials of the ministry were also present.
“Loans will be taken to repay the loans taken by the previous government. Talks with the IMF will be held in Pakistan and not in any foreign land. We have invited the IMF delegation and it is coming to Pakistan on the 19th of June. But, we will seek the loan on our own terms,” asserted the minister.
During media interaction, Dar appeared agitated with media’s criticism of the budget, and took quite a lot of time in trying to build his case in front of the unimpressed journalists who were firing question after question at him.
The finance minister made another disclosure, stating that the government would soon appoint a federal adjuster to assist prompt recovery of outstanding dues of the power sector from provincial governments.
Dues of around Rs 200 billion are outstanding in this regard and would help the federal government end circular debt, he stated. The minister said the government would introduce strict financial discipline and transparency in the financial affairs of the country.
He said austerity measures proposed by the government would help save Rs 40 billion.
Clarifying media reports about taxing Haj pilgrims, the minister said the government was going to tax Haj operators, instead of pilgrims, adding that the government had put the country on the right track from day one.
Talking on salaries of civil servants, the minister said that the government would increase their salaries next year.
He also said GDP growth would touch 7 percent if the energy crisis was resolved.
Dar said the government had set a target to achieve $15 billion in remittances during 2013-14, a one billion dollar rise from the outgoing year.
The minister also said the government had set a target of $20 billion in remittances for June, 2016.
He said debt level would be decreased to 61.5 percent of GDP, adding that Pakistan was in dire need of taxes. He said maximum tax on the salaried class stood at 30 percent while there were only 3,114 people earning over Rs 7 million per year.
“If we are serious in putting the economy of the country on the path of stability, we will have to raise our GDP growth up to 7-8 percent,” the minister said.
Dar claimed that under the medium-term framework from 2013-14 to 2015-16, inflation will be maintained in single digits while investment to GDP ratio will rise to 20% at the end of term.
He said fiscal deficit will be brought to 4% of GDP by 2015-16 while the country’s foreign exchange reserves will be increased to more than $20 billion at the end of the medium-term.
He said these targets are ambitious but are imperative for revival of the economy and quite consistent with its potential.
“Besides, we have the determination to turn around the destiny of this nation and this is why people have given us mandate,” Dar added. The minister said the government would ensure a transparent auction of 3G licenses to fetch about $1,200 million.
“We will also strive to secure the payment of $800 million from the Etisalat that is due for more than 5 years,” he added. The minister said all-out efforts would be made to improve the economic situation of Balochistan, besides addressing other issues.
He said it would be ensured that funds for a particular project are spent on that very project. Dar said an allocation of Rs 18 billion for the Higher Education Commission (HEC), would support development plans of the country’s various universities. He said the number of foreign scholarships would rise to 6,249 from 4,249 during 2013-14.
Similarly, under the Small Business Loans Scheme, loans ranging from Rs 100,000 to Rs 2,000,000 at a markup of 8%, to be borne by the government, would be made available through the banking system, he said.
He said the Fee Reimbursement Scheme for Less Developed Areas would be expanded to interior Sindh and Multan, Bahawalpur and DG Khan Divisions of southern Punjab. At present, he added, the scheme was available to students of Balochistan, FATA and Gilgit-Baltistan.
He said under the PM’s Micro Finance Scheme, the government would provide Rs 5 billion to launch a scheme of loans without markup.
He said reforms would be introduced in the Federal Board of Revenue (FBR) and leakages would be prevented to enhance revenue collection. He said the ratio of income tax has been increased only on those having an annual income of more than seven million rupees.

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28 COMMENTS

  3. NO LOAN FROM IMF WE WILL PREFER TO DIE RATHER THAN TO GO IMF.THE WHOLE NATION IS SURPRISED TO HEAR FROM PMLN WILL BEND TO IMF.SHAME SHAME FOR PMLN IF THEY GO TO IMF FOR LOANS.NOT ACCEPTABLE IMF AT ANY COST

  4. BISP IS NOT ACCEPTABLE AS IT WAS THE RUBBISH MANIFESTO OF OUT GOING OPPONENT PPP..BY CHANGING ITS NAME TO ISP IS FOOLISH ACTION BY PML N AND THE WHOLE NATION IS WILLING TO SEE PMLN`MANIFESTOS ONLY .IT IS SORROWFUL,CONDEMNABLE AND SHAMEFUL IF PMLN ADOPTS THE RUBBISH POLICIES OF PPP.

  10. We need to collect more taxes. PML-N had opposed every move by the previous government to collect more taxes. It is extremely shameful on the part of Punjabi politicians who stole 2013 elections like those in 1990s and increased GST rate within one week of assuming power. Our Tax to GDP ratio needs to be 18%. Present ratio is 8.5%. Tax ratio in Punjab is only 4%. Smaller provinces are performing much better. I hail from Punjab. My head hangs in shame when I see Punjab has been exploiting the other provinces of Pakistan since 1947. We are responsible for the fall of Dhaka and now, we are leaving no stone unturned to weaken the federation by exploiting smaller provinces. For example, Punjab produces only 5% of the country, uses 45% and still complains. This is only one example out of many. We need to wake up before it is too late.

  12. Own terms or others terms its same just for fooling nation.Now where is PML-N slogan during election campaign by saying "We will break bowl and not beg from others"

  15. Either he is over-confident of his intelegence or a perfect fool, trying to make fool of the nation.
    A Begger setting terms for begging.
    Joke of the day!!

  19. Hahahaahahaahaha…… Mujhe Qarza Chaye wo b Meri Conditions Per Wah Re Ishaq Dar ……

  22. Pakistan don't need imf we have our narural resources we can do anything but we have to get rid of all the fucking politicians !!

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