Revival of the IMF programme was top most priority of govt after taking reins of power: Miftah Ismail
KARACHI, Sep 02 (SABAH): Federal Minister for Finance and Revenue Dr. Miftah Ismail Ahmed has said that the national economy is moving in the right direction due to prudent policies of the government.
Addressing a discussion on “current state of Pakistan’s economy” at Karachi’s Institute of Business Administration (IBA) on Friday, Miftah Ismail said that he contested election two times from Karachi and in fact he won both times, adding that he is not Mahmood Ghaznavi so he could not make 17 attempts and if not won in third attempt he will not make attempt again.
Miftah Ismail said revival of the IMF programme was top most priority of the government after taking reins of power. He said that the scope of tax net is being increased and business class is being brought under tax net. He said that the government by adopting prudent policies has saved the country from default. Miftah Ismail said that after taking charge of the finance ministry, the very next day left for United States for holding negotiations with IMF to revive the Pakistani program.
Miftah Ismail said that flash floods have caused devastation on a large scale in the country. He said an amount of 28 billion rupees has been disbursed through Benazir Income Support Programme in a transparent manner in order to provide relief to the affected people. He said that initially an amount of 25 thousand rupees is being transferred to affected families so that they can meet ration needs.
The Finance Minister said that flood-affected people will not be left alone in this testing time and they will be compensated by utilizing all available resources, even diverting PSDP funds for their rehabilitation.
Miftah Ismail has hinted at his early exit, saying that although the coalition government has 13 months, he may not have that much time. “The government has 13 months but I may not have that much time,” said Miftah Ismail. Miftah Ismail said that we will win one election and our government will remain intact for next six years.
Miftah Ismail said that the government took difficult decisions in difficult situations as their first priority was to revive the International Monetary Fund’s loan programme. “We contacted IMF soon after coming to power and with prudent policies saved Pakistan from default.”
The PTI government signed an agreement with the Washington-based lender and then violated the terms of the agreement by announcing subsidies on petroleum products, he said.
The finance minister lamented that the country’s population is increasing at a rate of 2.4%, adding that 55% population of Pakistan is under the age of 25 years. He said that bringing growth in Pakistan’s economy is not difficult but whenever bring 5 or 6 percent growth then we come under the problem of current account deficit.
He said that Pakistan “has not defaulted and will never default”, adding he feels ashamed asking for loans. “No one wants to give tax in Pakistan,” he lamented further. He said that the scope of the tax net is being increased and the business class is being brought under the tax net.
Miftah Ismail said that no one pays tax in Pakistan, adding that we secured 52 percent tax from port last year, adding that when we impose tax on imported things then these imported things become costly. He said that 80 percent manufactures sell their items in Pakistan as they get more profit as compared to exporting them. He said when East and West Pakistan parted ways with each other at that time there were 300 assembly seats out of which 162 were in East Pakistan and 138 in West Pakistan, adding that East Pakistan’s population was more as compared to West Pakistan. He said that today there is 150 to 160 million population of Bangladesh and Pakistan’s population is 230 million, adding that if we talk about the population planning in Pakistan, the Islam becomes in danger. He said that no government in Pakistan talked about population planning in last 30 or 40 years.
Miftah Ismail said that he remained in jail for five months, adding that if anyone will ask NAB officials on oath that whether Miftah Ismail was guilty or not, they will say Miftah Ismail was not guilty. Miftah Ismail said that the NAB officials knew I was not guilty instead of this fact they sent me behind the bars.
Miftah Ismail said that during the current financial year FBR will generate revenue of Rs 7470 billion, adding that he will secure Rs 850 billion while imposing levy on petrol and diesel. He said that the budget deficit which was at Rs 5260 billion year will be brought down to Rs 3800 billion during the ensuing year. He said that Rs 4000 billion be paid in form of interest during the current financial year. He said that PTI struck agreement with IMF in November last year and broken it in February this year while giving Rs 5 subsidy on electricity per unit and gave unlimited subsidy on petrol and diesel and fixed the petrol price at Rs 150 and diesel at Rs 145 per liter, adding that Rs 72 was given subsidy on per liter diesel and Rs 30 to 35 on per liter petrol.
Miftah Ismail said that he is the least popular politician in Pakistan because he increased the prices of petroleum products, adding that it was his responsibility that until and unless he is the finance minister of Pakistan, the country should not go towards default. He said that Pakistan was selling the petrol on cheaper rates as compared to United Arab Emirates (UAE) instead of the fact that petrol is produced by UAE itself. He said that there are $600 reserves of India and Pakistan has only $8 billion reserves.
Miftah Ismail said that during the current financial year we will have to pay debts of $20 billion, adding that we will pay each and every penny of the external loan. He said that government of Pakistan is never defaulted and it will never default. He said that 30 percent cotton crop has been damaged in the country in result of recent flood and heavy rains, adding that 20 person sugarcane crop has been damaged. Miftah Ismail said that we have to live within our means, we have to increase our exports and improve agriculture subsidy and educate our children.
Miftah Ismail said that in Sri Lanka petrol is being sold at Rs 470 per liter and in black market it is being sold at Rs 3000 per liter, adding that the hospitals have been closed in Sri Lanka as there is no money with them to purchase the medicines.
Miftah Ismail said that fuel adjustment charges will not be taken from the electricity consumers up to 300 units for two months, adding that after two months electricity rates will come down in the country as now we are able to buy cheaper fuel, gas and everything. Miftah Ismail said that it is 50/50 that he will present another budget or not.
Replying a question, Miftah Ismail said that India purchases 1.3 oil from Russia and it has not started buying oil from Russia today but is purchasing for a long time, adding that Pakistan never purchased oil from Russia. He said that former prime minister Imran Khan visited Russia on 22nd February, adding that the people could read the newspapers of those dates and it is written nowhere that Imran Khan had visited Russia for purchasing oil, adding that purchase of gas and wheat was reported by the newspapers. He said that if Imran Khan is true then he should tell why Pakistani government did not purchase oil from Russia in March.