Miftah Ismail says he had not said that petrol price will not increase; rather he had said that he will not impose any new tax
ISLAMABAD, August 16 (SABAH): Federal Minister for Finance and Revenue Dr. Miftah Ismail Ahmed has said the economy is improving and the government’s next target is to control inflation. Miftah Ismail said that he is responsible for every decision, adding that he had not said that the petrol price will not increase; rather he had said that he will not impose any new tax. He said that the masses should pose confidence in the government; both the rates of dollar and petrol will decrease.
Addressing a news conference in Islamabad on Tuesday, Miftah Ismail said the rupee has continuously been appreciating since the 1st of this month due to curbs imposed on imports of non-essential items.
The Finance Minister said the present government has averted default by taking difficult political decisions and a beginning has been made to put the economy on sound footing.
Criticizing the economic policies of PTI government, the Finance Minister said they left behind 10.3 billion dollars in foreign reserves and we have to return loan of twenty-one billion dollars during the current fiscal year.
The Finance Minister said prices of petroleum products are determined by OGRA as per a laid down mechanism. He said no additional tax has been imposed on the petroleum prices. He pointed out that price of petrol in India is 303 rupees per liter while in Bangladesh it is being sold at 308 rupees.
Miftah Ismail said that a new letter of intent sent by the IMF will be signed by him today. He was confident that disbursements to Pakistan will start following the IMF’s board meeting by the end of this month.
Responding to a question, the Finance Minister said that 27 billion rupees in taxes will be collected from the traders during the current fiscal year.
The finance minister clarified that he had not stated that he would not be increasing the price of petroleum products. “I had never said that I will not increase the price of petrol, I had stated that I will not be imposing taxes [on petroleum products] further,” Miftah Ismail said.
“I stand behind every decision of the government with full responsibility,” the finance minister said, noting that no economic decision was taken without his input.
Miftah Ismail also said that he respects the PPP leadership and would address their reservations over the decision related to the prices of petroleum products.
The finance minister said the International Monetary Fund’s (IMF) programme had “started”. Once the government sends the Letter of Intent (LoI) back to the Fund, its executive board will meet and give its approval for the dispersal.
He reiterated that the executive board was scheduled to meet later this month — August 29 — for considering Pakistan’s request to approve the seventh and eighth reviews and release a tranche of $1.17 billion under the Extended Fund Facility (EFF).
The finance minister also castigated the Imran Khan-led government for “moving away” from the agreement and conditions it had set with the IMF for the loan dispersal.
“Imran Khan did not target us (the incoming government), but he targeted Pakistan’s economy,” Miftah said, indicating the previous regime’s decision to give petroleum subsidies.
Miftah Ismail added that it was always his belief that once the imports fall, the rupee will ultimately strengthen. “We imposed a ban on non-essential commodities.”
He slammed the previous government for leaving a circular debt of Rs1,500 billion. “You (the PTI) left a current account deficit which was more than General (retd) Pervez Musharraf’s tenure.”
Questioned about an impending Rs10 increase as petroleum development levy on September 1, as per the IMF agreement, Miftah Ismail said it would “100 percent” happen as long as he was there.
Miftah Ismail stated that the IMF Letter of Intent (LoI), received last Friday, had been pondered over comprehensively by the State Bank of Pakistan (SBP), Finance Division and Revenue Division and they would dispatch the finalized one shortly after putting signatures. The minister added that the LoI had been finalized after certain edits as well as meetings with IMF officials. “We are hopeful that board meeting with IMF would be undertaken on 29th August and disbursement of funds would get started”, he added.
As far dreadful upward trajectory of US Dollar after 17th July reaching 239 PKR in inter-bank, the minister felt pride in the incumbent government for being meticulous enough to bring the greenback under control. He highlighted that Pakistani Rupee had been recorded as the strongest currency and Pakistan Stock Exchange as the best in the world between 1st and 15th August. “We stopped several imports, particularly luxury items and electronics, bringing them in equivalence to exports and remittances and hence we remained successful in organic appreciation of PKR reflecting the real condition of economy”.
The minister said that PTI government misunderstood current account deficit as the only barometer for staggering economy throwing growth and infrastructure in oblivion. He added that PTI regime had gravely put Pakistan into quagmire of foreign debts with appalling circular debts of gas and electricity.