ISLAMABAD
Finance Minister Ishaq Dar chaired a meeting to rollout the preparations of next year’s budget at the Finance Ministry on Friday.
Dr Waqar Masood, finance secretary, made a detailed presentation on the next budget.
The minister expressed satisfaction on fiscal results for the first eight months of the current year which showed a deficit of 3.2 percent as compared to the proportionate target up to February of 3.5 percent.
He stressed the need for continued vigilance on expenditure in line with revenue receipts so that the budgetary targets are achieved without fail.
While commenting on the preparatory exercise, presented to him, the minister emphasized that austerity will continue to remain the hallmark of PML-N’s budget strategy and fiscal management.
Dar further underlined the need for clear and meaningful indications of budgetary ceilings to all federal ministries and for Public Sector Development Programme (PSDP) so that they can prioritize and formulate their expenditure proposals well in time.
Separately, Dar urged international investors to grab huge potential and opportunities in Pakistan’s energy and infrastructure sectors.
He was talking to Philip Barton, British High Commissioner to Pakistan, accompanied by Richard Montgomery, head of UK Department for International Development in Pakistan, who called on Dar at the Finance Ministry.
The minister informed the delegation that Pakistan’s economy was performing much better as all the economic indicators were on the positive side.
Dar said that during the last seven months of the current fiscal year there has been 17 percent growth in taxes collection whereas it was less than 3 percent last year.
“We are confident to meet our targets for the current fiscal year,” he remarked. He added, “We will be sticking to disciplinary mechanism on expenditure side and enhance our allocation for developmental activities and disbursements to poor people through social safety networks.”
He emphasised that there was a great potential for trade expansion with the UK in the light of Prime Minister Nawaz Sharif’s vision for consistency in economic policies and creating an atmosphere where foreign investors can invest in energy, hydrocarbons and infrastructure projects.
The minister also briefed the high commissioner about his recent visit to Afghanistan and development projects including Torkham-Jalalabad Highway and Kidney Hospital, undertaken by Pakistan.
He said that these were the signature projects between Pakistan and Afghanistan which were “close to our hearts”. He said that the visit went very well in general public of that brotherly country.
He said that the best way the UK could help was to encourage the international investors to grab the huge potential and opportunities available in Pakistan in energy and infrastructure sectors.
The high commissioner said, “Making Pakistan more prosperous is key to our relationship.”
He said, “We are very keen to work with Pakistan on enhancing our commercial and economic relations.”
He said, “Pakistani Diaspora in United Kingdom is of a great value for us who consider Pakistan as their second home. We are impressed with the transparency and merit oriented policies the government is pursuing.”
He added that in a democracy, fundamental policy of the government was to collect taxes and allocate resources for development. He also praised Dar’s visit to Jalalabad, despite security issues on the day when a terrorist attack occurred in Kunar province.
He expressed his government’s resolve to work with Pakistan in bringing peace and prosperity to the region.
Moreover, the high commissioner added, “We are of firm belief that CASA-1000 and energy corridor between Pakistan- Afghanistan and Central Asian Republic States will promote regional trade and the United Kingdom is willing to help in these projects. He also assured the FM that the UK was looking forward to help Pakistan in meeting their economic problems and to bring in foreign investment.
Montgomery said that the UK AID was working with the State Bank of Pakistan, Pakistan Poverty Alleviation Fund and other public and private banking sector for providing agricultural financing including micro-enterprise loans and savings services to the rural low income clients in Pakistan. He said that the initiative will help spur innovative practices to increase financial services in the agriculture sector.