Saifullah Sani
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Finance minister Ishaq Dar claimed on Friday that the incumbent government would bring down the fiscal deficit to 6.3 per cent this year and would achieve a growth rate of over four per cent.
In an interview to BBC World Business Edition Dar termed fiscal deficit the mother all evils and vowed to bring down the fiscal deficit from current eight per cent annually to 6.3 per cent this year. “Next year our target is five and then four [the subsequent year] which is considered normal around the world.”
The finance minister said that the economic direction of the country is positive; the multilateral donors have placed more confidence on Pakistan; IMF has also revised its growth targets and Pakistan is going for World Bank IDA Programme which otherwise would lapse in June 2014.
During the last five years, the growth rate on average remained mere three per cent while the country’s population growth rate was 2.3 per cent, said Dar. He said that the government intends to achieve four per cent growth rate in the current year and wishes to raise it to six per cent over the next three years.
In this regard, the finance minister pointed out how in its second review, even the IMF and ADB accepted that their projected figures were conservative and appraised their projections from 2.8 per cent to 3.1 per cent.
“We have a three year macro-economic stability programme and the targets are very clear,” said Dar.
The minister emphasised that the government has undertaken numerous reforms and stabilisation measures that aims to bring back ADB, Islamic Development Bank, JICA, IFC and everybody back in business with Pakistan after three years.
He said that the government’s five year plan includes working with the World Bank viz; Country Strategy Partnership would be revolving around the four Es (extremism, economy, energy, education) included the PML-N’s manifesto.
The minister claimed that PML-N has drastically cut the current expenditure and increased the allocations in social safety net and PSDP for the fiscal year 2013-14. Dar added that expenditure on social safety has been doubled in the current budget and development expenditure alone have been increased Rs100 billion.
He pointed out that the government has made massive cuts to its expenditure, but has left development expenditure untouched.
The finance minister said that the world is a global village and that Pakistan cannot stand isolated from the international community. This is why, Dar said, Pakistan was trying to bring in multilateral donors and partners to be back in business with Pakistan.
Stressing that Pakistan should have a larger share in the international bond market, Dar said that the Pakistan government is assessing the bond market.
On infrastructure development in Pakistan, the minister said that we are preferring the BoT basis. On energy sector we have agreed upon upfront tariffs without any confusion and waste of time.
Trade with India
The finance minister said that the PML-N government has a clear road map and we prefer trade and investment with the international community not aid from our friends.
He added that the government had a very clear stance on promoting regional trade with SAARC countries.
On the issue of opening up trade with India, Dar said, the government is actively engaged with India for past ten months, and almost everything has been finalised.
Dar said that Pakistan does not wish to be seen as a country supporting any political party in Indian elections, therefore any decision has been saved till after the elections.
“Pakistan will be happy to work with any political party which wins the elections and comes to power,” sad Dar.
Coalition Support Fund
On a question regarding Coalition Support Fund (CSF), Ishaq Dar said that the purpose of CSF has been totally misunderstood.
He said that CSF is not assistance but it is the reimbursement of expenses incurred by Pakistan on dealing with terrorism.
Dar vows to bring fiscal deficit down to 6.3% – The Express Tribune
In an interview to BBC World Business Edition Dar termed fiscal deficit the mother all evils and vowed to bring down the fiscal deficit from current eight per cent annually to 6.3 per cent this year. “Next year our target is five and then four [the subsequent year] which is considered normal around the world.”
The finance minister said that the economic direction of the country is positive; the multilateral donors have placed more confidence on Pakistan; IMF has also revised its growth targets and Pakistan is going for World Bank IDA Programme which otherwise would lapse in June 2014.
During the last five years, the growth rate on average remained mere three per cent while the country’s population growth rate was 2.3 per cent, said Dar. He said that the government intends to achieve four per cent growth rate in the current year and wishes to raise it to six per cent over the next three years.
In this regard, the finance minister pointed out how in its second review, even the IMF and ADB accepted that their projected figures were conservative and appraised their projections from 2.8 per cent to 3.1 per cent.
“We have a three year macro-economic stability programme and the targets are very clear,” said Dar.
The minister emphasised that the government has undertaken numerous reforms and stabilisation measures that aims to bring back ADB, Islamic Development Bank, JICA, IFC and everybody back in business with Pakistan after three years.
He said that the government’s five year plan includes working with the World Bank viz; Country Strategy Partnership would be revolving around the four Es (extremism, economy, energy, education) included the PML-N’s manifesto.
The minister claimed that PML-N has drastically cut the current expenditure and increased the allocations in social safety net and PSDP for the fiscal year 2013-14. Dar added that expenditure on social safety has been doubled in the current budget and development expenditure alone have been increased Rs100 billion.
He pointed out that the government has made massive cuts to its expenditure, but has left development expenditure untouched.
The finance minister said that the world is a global village and that Pakistan cannot stand isolated from the international community. This is why, Dar said, Pakistan was trying to bring in multilateral donors and partners to be back in business with Pakistan.
Stressing that Pakistan should have a larger share in the international bond market, Dar said that the Pakistan government is assessing the bond market.
On infrastructure development in Pakistan, the minister said that we are preferring the BoT basis. On energy sector we have agreed upon upfront tariffs without any confusion and waste of time.
Trade with India
The finance minister said that the PML-N government has a clear road map and we prefer trade and investment with the international community not aid from our friends.
He added that the government had a very clear stance on promoting regional trade with SAARC countries.
On the issue of opening up trade with India, Dar said, the government is actively engaged with India for past ten months, and almost everything has been finalised.
Dar said that Pakistan does not wish to be seen as a country supporting any political party in Indian elections, therefore any decision has been saved till after the elections.
“Pakistan will be happy to work with any political party which wins the elections and comes to power,” sad Dar.
Coalition Support Fund
On a question regarding Coalition Support Fund (CSF), Ishaq Dar said that the purpose of CSF has been totally misunderstood.
He said that CSF is not assistance but it is the reimbursement of expenses incurred by Pakistan on dealing with terrorism.
Dar vows to bring fiscal deficit down to 6.3% – The Express Tribune
