Price hike won’t be allowed, says Dar

ISLAMABAD: Finance Minister Senator Ishaq Dar here on Wednesday took pains to dispel the impression that the new budget was for the rich and ignored the poor. He insisted that the government had taken steps to make the poor self-reliant and stand on their own feet, and that no one will be allowed to increase the prices of commodities in the name of budget.
Yet, in his post-budget press conference, the finance minister was evasive, did not allow stinging questions and took up most of the time repeating the text of his budget speech, so much so that a senior journalist lost temper and walked out of the briefing.

Ishaq Dar said the federal budget’s main thrust was on increasing exports and that was why the government had taken the revolutionary step of establishing the EXIM Bank of Pakistan, which will act as a catalyst in improving exports.

However, he dispelled the impression that the budget was for the rich only and not for the poor, saying the government had imposed taxes on the rich and taken many relief steps to cater to the vulnerable segments of the society.

He said if the benchmark of $2 a day income was kept in view, then 90 million people were living below the poverty line in Pakistan and the government was very concerned about them as this was the class which needed the utmost attention of the government.

“To this effect, the government has increased the allocation for the Benazir Income Support Programme to Rs118 billion from Rs75 billion under which the monthly stipend for the poorest of the poor has been increased to Rs1,500 from Rs1,200. We have decided to make them stand (self-reliant) on their feet and to this effect the government will take many initiatives.”

However, the minister did not mention at what speed the middle class was getting squeezed and why poverty was on the increase.The minister also did not say why he did not increase the CGT (Capital Gains Tax) on securities and also avoided to reply to questions about the impact of the mammoth reduction in subsidy for electricity consumers by Rs80 billion from Rs245 billion to Rs156 billion.

The press briefing was regulated in a way that no concerned journalist could raise pertinent and precise questions and when some of them tried to highlight some critical issues, the minister adopted an evasive attitude and kept on repeating what he wanted to highlight.

The minister consumed most of the time in repeating the budget speech and left insufficient time for the question-answer session. During his speech, one senior journalist lost temper and left the press briefing. It seems all was done in a deliberate attempt to avoid the stinging questions.

The minister also skipped the question on money laundering that was raised in the context of MQM leader Altaf Hussain, but the questioner took up the issue, pinpointing that some ‘influential’ people who were also involved in money laundering in the past were still in the government.

However, the minister only said that the government would facilitate him (Altaf Hussain) as he was of the Pakistani origin and added that the government was in the process of updating the money laundering law in Pakistan in the light of recommendations of financial action task force.

When pointed out that in the budget there was no mention of PTCL proceeds of $800 million that Etisalat owes to Pakistan, the minister said that this was a seven-year-old dispute under which 131 properties of PTCL were to be handed over to the said company and out of 131, only 32 properties were left which are to be handed over as they all could not be transferred. “I have exerted pressure on the company through diplomatic quarters so that the company should pay $600 million out of $800 million to Pakistan and I hope that I will be able to resolve this issue soon.”

Mentioning the major steps for growth in exports, the minister said that the setting up of the EXIM Bank of Pakistan will enhance the export credit and reduce the cost of borrowing for the export sector on a long-term basis and will help reduce their risks through export credit guarantees and insurance facilities. The bank will provide liquidity to exporters.

Under the Exports Refinance Facility (ERF), he said the government, through the State Bank of Pakistan, had arranged to reduce its mark-up rate on exports finance from 9.4% to 7.5%, which will bring it in line with the rate prevailing in the countries competing with Pakistan, which will reduce the financial cost of exporters by 2%.

He also said the State Bank of Pakistan had arranged long-term finance facility to reduce its mark-up rate on long-term financing facility for 3-10 years duration from around 11.4% to 9% from July1, 2014, which will reduce the financial cost of exporters by 2.4%.

Dar said that drawback for local taxes and levies will be given to exporters of textile products on the FOB values of their enhanced exports if increased beyond 10% (over the last year’s exports) at the following rates: the duty drawback to be given to exporters on garments by 4 percent, made-ups 2 percent and processed fabric 1 percent. “Mark-up rate for export refinance scheme of the State Bank of Pakistan is being reduced from 9.4% to 7.5% from 1st of July 2014.”

To a question, the minister said that in the first phase many SROs valuing Rs130 billion had been withdrawn. He also repeated many proposals that were given in his budget speech on Tuesday.

Dar to present Rs3.8 trillion budget tomorrow

 

ISLAMABAD: The government is all set to present its second federal budget with an outlay of about Rs3.864 trillion for the fiscal year 2014-15 before parliament on Tuesday (tomorrow).
A special budget session of parliament (National Assembly and Senate) has already been summoned by the president.Finance Minister Senator Ishaq Dar will lay the budget proposals for the financial year 2014-15 in the House, sources said adding these budget proposals will be presented first for approval before the federal cabinet in its special session to be chaired by Prime Minister Nawaz Sharif.

The national budget for the upcoming financial year (2014-15) envisages revival of the economy and overcoming the challenges. “Overcoming the energy crisis, stabilisation of the economy, cutting down the non-development expenditure, enhancing productivity through new growth strategies, reducing the fiscal deficit and inflation, enhancing revenue collection and welfare of the people will feature as priorities in the upcoming budget,” they added.

The budget will also focus on social sector development and revenue enhancement, besides reforms will also be introduced for improving governance and boosting the private sector investment.

The National Economic Council (NEC), with Prime Minister Nawaz Sharif in the chair, has already approved the Annual Plan 2013-14 and proposed the Annual Plan for 2014-15 and Vision-2025.

The NEC has also approved the allocations for the Diamer Bhasha Dam, Karachi Coastal Power Project, Dasu Hydro power project, Neelum Jehlum hydro power project, Chashma NPP, Jamshoro power project, Tarbella Extension IV project, Nandipur power project, Chichon-ki-Malyan Power project, Gomal Zam project, Kurram Tangi Dam and Golan Gol hydro power project.

Infrastructure projects including the Lahore-Karachi Motorway, Hasanabdal-Havelian-Mansehra Road project, Peshawar Northern Bypass, Raikot-Islamabad project, Gwadar Airport, Gwadar Free Economic Zone and construction of a jetty and infrastructure development at the Gaddani Power Park also received the approval of the NEC.

The government has already approved Rs53.5 billion for land acquisition cost of the Lahore-Karachi Motorway of which 25.5 billion have already been released. As part of decent democratic traditions in Pakistan, the opposition parties are given maximum time to take the floor and freely express their point of view on budget allocations in the House. The valuable proposals and suggestions from either sides are taken care of by the finance minister while winding up the debate.

Apart from diplomats and other dignitaries, the President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Zakaria Usman, Zonal Chairman PFCCI Munawar Mughal, Saarc Chamber of Commerce and Industry Pak Chapter VP Iftikhar Ali Malik have also been invited for the first time by Dar to witness the budget session proceedings.Annual budget sessions of the Punjab, Balochistan, Sindh and Khyber Pakhtunkhwa provincial assemblies will be convened soon after presentation of the national budget.Security arrangements have been beefed up in and around the Parliament House.

Govt starts uplift projects to facilitate people: Dar

ISLAMABAD: Federal Minister for Finance Ishaq Dar has said that Pakistan Muslim League-Nawaz (PML-N) government had launched several development projects to improve economy and facilitate the people.

He said that Nandipur, Dasu, Bhasha, Neelum-Jhelum and other projects would be completed in near future to meet the growing demand of energy in the country.

Talking to the official television, he said that PML-N government was taking all important steps to streamline the system. Ishaq Dar said the government had paid circular debt to bring improvement in the energy sector.

Ishaq Dar said that budget deficit had been reduced due to the dynamic policies of the present government.

He said that a large number of people would be provided assistance through Income Support Programme.

The finance minister said that the PML-N was following its manifesto given during the election campaign.

Replying to a question, he said that present government wanted to produce 40,000MW electricity through different resources for achieving speedy progress in all the sectors.

Ishaq Dar said that a huge amount was allocated for fee reimbursement programme of the students.

To another question, he said the government was not getting any dictation from International Monitory Funds (INF).

He said that an additional amount would be given to the provincial governments to bring prosperity in the country.

Meanwhile, the World Bank (WB) Country Director for Pakistan, Rachid Benmessaoud, expressed the hope that the board of the bank would approve assistance for Dasu Project.

“We are working day and night for board meeting to be held on June 10 and hope that the assistance for Dasu Project will be approved,” he said during his meeting with Finance Minister Senator Mohammad Ishaq Dar here.

During the meeting WB Country Director assured the finance minister that things were moving positively for Pakistan at the World Bank.

He said that they were encouraged by the positive trends of the economic indicators.

The meeting was also attended by Shahid Mahmood, Special Assistant to the Finance Minister and senior officials of the Finance Ministry.

Ishaq Dar informed the Country Director that Pakistan’s economy was moving in the right direction and that we would continue to engage with multilateral fora including World Bank for assistance in energy and infrastructure development programmes initiated by the government.

He added, in line with the vision of the prime minister to make Pakistan developed and prosperous country, the government has embarked upon a plan to meet the energy requirements and make Pakistan an economically viable country.

He emphasized that World Bank’s assistance in energy and development projects particularly on Dasu Dam and CASA -1000 will help Pakistan progress.

Those earning $2 a day should also be counted as poor: Dar

 

ISLAMABAD: Finance Minister Muhammad Ishaq Dar on Sunday said poverty needs to be defined afresh and those earning US $2 a day should also be considered poor.
Speaking at the first business session at the 47th annual meeting of the Asian Development Bank (ADB) Board of Governors in Astana, Kazakstan, Dar said the national economy would hopefully grow by over 4 percent during the current fiscal year (2013-14).

Inflation would remain in a single digits due to growth in both the agricultural and industrial sectors, Dar said, adding that the fiscal deficit had been reduced to around 6 percent through an increase in revenues, reduction in expenditure and positive growth in exports and remittances.

Necessary domestic reforms were being undertaken as the government preferred regional integration through increased connectivity and enhanced preferential arrangements, he added. He outlined the government’s strategies for overcoming the macro-economic challenges, according to a statement issued by the Finance Ministry here.

It said during the Constituency Breakfast Meeting, Dar suggested that the ADB revise the absolute poverty line from $1.25 per day to $2 per day in conformity with the latest revision adopted by the International Monetary Fund (IMF).

The minister stated thatpresently 2.4 billion people were living below the poverty line of $2 a day.During the Governor’s Plenary Session, the minister highlighted the government’s response to the recent natural disasters in Pakistan and future strategy of the National Disaster Management Authority (NDMA) of Pakistan. He emphasised the need to reduce exposure to natural hazards and disasters.

He suggested that the development partners such as the ADB, World Bank and IMF devise different strategies and action plans for promoting disaster risk reduction programmes. He said these institutions could benefit from Pakistan’s experiences.

Dar invited Finance Minister and Deputy Prime Minister Bakhyt Sultanov and President Nursultan Nazarbayev to visit Pakistan this year. He requested Sultanov to consider measures for easing the movement of people along with enhanced cooperation in the areas of trade, investment banking and finance.

The World Bank also appreciated Finance Minister Ishaq Dar’s vision, hard work, kindness and courage to tackle difficult issues the country has been facing.In a letter written to Dar with regard to Pakistan Day, WB Vice President (South Asia Region) Philippe Le Hourou said the Board was appreciative of the actions taken by Pakistan.

Le Houerou advised Pakistan to stay the course, and for the World Bank Group to stay engaged in Pakistan’s development. “I am happy to report that it really was a ‘Pakistan Day’ and Pakistan was shinning. It is very clear that we owe this success to the strong leadership of the prime minister and to the finance minister personally”, Le Houerou added.

Forex reserves to reach $15 bn by Sept 30, says Dar

 

ISLAMABAD: Finance Minister Senator Ishaq Dar on Saturday said that forex reserves have increased to $12 billion and will reach $15 billion by September 30.
He was talking to prominent UK fund managers, including Chief Executive Officer (CEO) London Stock Exchange Xavier Rolet, who called on the minister, says a statement of the Finance Ministry.

The minister apprised them that the country’s macro-economic indicators have shown steady improvement as a result of the stabilisation and structural reforms undertaken by the government.

He also informed the delegation that the capital market in Pakistan grew by over 40% since the government took over and apprised them that the country was open to business and offered attractive investment opportunities with high returns.

Dar said the response of international investors was overwhelming and the subscription was 14 times over the amount originally intended.

He mentioned that with the launch of the Euro bond Pakistan has returned to the international bond market after seven years of absence.

He said Pakistan’s recent dollar bond received bids totalling $7 billion, reflecting the strong demand for Pakistan’s sovereign paper.

The minister also informed that Pakistan will issue an Islamic bond denominated in dollars for Islamic banking institutions and funds.

He informed the group that after initiating home grown economic reforms with successful implementation, Pakistan’s standing in the international markets has improved considerably.

While talking about the energy crisis, the minister told the delegation that the government was launching various energy projects and taking necessary steps to add around 10,000 megawatts generation to the national grid which

will eliminate the energy shortfall in the next four years.

He said the government has already managed to clear the circular debt of Rs500 billion within 45 days of taking oath. He added that the World Bank has approved two concessionary loans to Pakistan after a period of five years and will provide $1 billion for energy and development reforms.

He said the government has secured the necessary financing for the construction of the Dasu Hydropower Project. The financing of the Diamer-Bhasha Dam is in progress and the government has already started acquisition of land from its own resources for this project.

The minister also highlighted the opportunities in the telecommunication sector and informed the group about the recent auction of 3G and 4G licences which has fetched over $1.1 billion recently in a transparent manner.

Speaking about the privatisation agenda of the government, Dar informed the delegation that financial advisers have already been appointed through due process for the disinvestment of shares of United Bank Limited, OGDCL and PPL through London as well as Pakistan’s stock exchanges.

On the occasion, the UK fund managers appreciated the positive steps taken by the Pakistani government to put the economy back on track.

Rolet informed the minister about the institutional appetite of British companies towards Pakistan after the phenomenal growth in its capital market.

While praising the reform initiatives of the present government, he said Pakistan’s economic success story is gaining momentum and now needs to be told in a right way to the right people. He mentioned the ongoing collaboration between the London and Karachi stock exchanges with praiseworthy results.

He added that the London Stock Exchange is looking at ways to maximise partnership opportunities with Pakistan’s corporate sector.

Rolet congratulated Dar on the impressive success of Pakistan’s Euro bond issue in the international market.

Dar hints at 10 percent raise in salaries

 

ISLAMABAD: Federal Finance Minister Ishaq Dar said on Saturday that the government was considering increasing employees’ salaries by ten percent in the upcoming budget.
According to a private news channel, the finance minister said the PML-N government had also decided to continue the BISP and a sufficient amount would be allocated for the programme.

A meeting of the Economic Advisory Council (EAC), held with Ishaq Dar in the chair, discussed all aspects of the national economy. The economic Advisory Council recommended various measures to bring about an improvement to different sectors of the economy.

The sub-group on energy presented its proposals related to the oil and gas sector with the aim of achieving lower cost of energy and to become self-sufficient in national needs.

The sub-group on industry and trade recommended diversification of the export base, moving away from the prime focus on textiles and rice and for promoting a non-agriculture based export industry. The sub-group on food security recommended establishment of a special task force on social safety nets.

The sub-groups on resource mobilisation and expenditure management and the social sector also submitted their recommendations to the council.

Speaking on the occasion, the finance minister said the social safety net was an area of priority for the government.

He said that 50 percent of the country’s population was living below the poverty line.

4.1pc GDP growth in six months, claims Dar

ISLAMABAD: Finance Minister Ishaq Dar has claimed that Pakistan witnessed a GDP growth of 4.1 percent in the first half of the current financial year against 3.4 percent in six months of the last financial year.

However, in the first nine months of the current fiscal, revenue of the country increased to Rs1,574.6 billion against the Rs1,352.3 billion collected during July-March in the last fiscal showing the growth of 16.4 percent.

During the press briefing here on Wednesday, the minister said that budget deficit had come down 3.1 percent (Rs815 billion) in the first nine-month period against 4.6 percent (Rs1,046 billion).

Dar said that remittances had increased by 11.9 percent to $11.58 billion during the nine-month period from $10.35 billion. Exports have increased to $19.11 billion in nine months of the current fiscal year from $18.02 billion in the same periodof the last year, showing the growth of 6.1 percent. Forex reserves have swelled to $11.67 billion.

As far as inflation is concerned, it stood at 8.6 percent during July-March 2013-14 whereas it was at 7.98 percent in the same period of the last financial year. He said that 3,188 companies have been registered with the SECP in the first nine months of the current fiscal against 2,883 companies that got registered in the same period of the last financial year, showing a growth of 10.57 percent.

The growth in large manufacturing scale stood at 6.05 percent as against 2.78 percent in the period under review of the last fiscal year. “We have planned to give a credit line of Rs380 billion to the agriculture sector during the ongoing financial year, which is up by 13.09 percent if compared with Rs336 billion disbursed in last year,” Dar said.

Dar tasks FBR to recover Rs257 bn tax monthly

 

ISLAMABAD: Finance Minister Ishaq Dar on Tuesday directed the Federal Board of Revenue (FBR) to meet the target of tax collection at the rate of Rs257 billion a month as the country could not afford a delay in matters related to the economy.
He said the tax rates would not be increased but the tax base would be expanded to improve the ratio of tax to Gross Domestic Product (GDP).Notably, the government has made a commitment with the International Monetary Fund (IMF) to abolish tax exemptions and broaden the narrowed tax base in the next budget 2014-15 for increasing its stagnant tax to GDP ratio.

Dar was speaking at the FBR’s Regional Commissioners Conference held at the board’s headquarters.“We are committed to raising the tax revenue of the FBR 0.75 percent by abolishing tax exemptions and taking other measures in the upcoming budget,” official sources told The News.

They said nearly 0.35 percent of GDP-related revenue would be generated only through abolishing different tax exemptions currently being enjoyed by influential segments of the society.The finance minister said, “All the macroeconomic targets are indicating a positive side of our national economy, but the FBR’s tax collection is lagging behind. All-out efforts are required to achieve the revised target.”

The minister said he might start sitting in the Revenue Division to ensure the revised tax collection target of Rs2.345 trillion for the fiscal 2013-14 materialised.The finance minister had returned home on Tuesday morning from the US after attending the annual spring meeting of the IMF and World Bank. On his return, he directly reached the FBR headquarters to inform the tax collectors that they would have to gear up efforts to achieve the target of Rs199 billion envisaged for the ongoing month (April 2014).

He appreciated the tax collector for attaining 17 percent growth in revenue by netting Rs1.573 trillion in the first nine months of the current fiscal year as compared to the same period last fiscal.

The FBR will have to generate Rs772 billion during the last quarter (April-June) to meet the annual target.The tax collection target was revised downward from Rs2.475 trillion to Rs2.345 trillion in view of the constraints.

FBR’s spokesman Shahid Hussain Asad told this scribe that the finance minister had appreciated the performance of the board and also directed the tax officials to improve their performance in the last quarter.

“In the conference, we finalised a strategy to improve our tax collection,” he said and added that the government was not going to announce any relief. Therefore, the commissioners are sensitised to focus on their collection targets envisaged for the remaining two-and-a-half months, he said.

It is relevant to mention here that the Nawaz Sharif government has committed to the IMF to abolish a number of tax exemptions and to take other measures to broaden the narrowed tax base in the next budget 2014-15

Defence budget cannot be revisited: Dar

 

WASHINGTON: Federal Minister for Finance Senator Muhammad Ishaq Dar said on Monday that the defence budget could not be revisited and it was incumbent upon the government to broaden the tax net.
He announced the expanding of the tax net immediately after having successfully negotiated fresh loans from the International Monetary Fund (IMF) and the World Bank here.Addressing a press conference at the Pakistan Embassy following his four-day US tour, Dar said if taxes were not raised, more loans would have to be taken.

The finance minister said loans had to be re-paid and, as such, there was no option but to broaden the tax net. Revisiting the defence budget was not possible, while salaries and pensions of government employees were already quite low and there was no room for any cuts.

In this backdrop, Dar said the only option left for the government was to increase the tax net.A spokesman for the finance ministry, meanwhile, said that the priority of the government was to increase tax revenue by broadening the tax net and by including into the system people who were not paying their due taxes. He said in the first nine months of the currentyear, the government achieved around 17 percent increase in the tax collection as compared to the last year.

Ishaq Dar also said that things were shaping up for Pakistan’s economic boost as macroeconomic stability had earned the country huge confidence of international investors and financial institutions.

Wrapping up a hectic visit to Washington, during which he had a series of meetings with World Bank, IMF and US officials, Dar said that major financial institutions now agreed with Islamabad that Pakistan’s GDP growth would surpass their earlier projections.

“The World Bank and the IMF now agree that the country would chalk up a better economic growth than earlier projections and our projection for the year is 4 percent plus,” he told Washington-based Pakistani journalists.

Earlier, Ishaq Dar held a very productive meeting with Ms Justine Greening, British Secretary of State for International Development in the World Bank, at Washington DC on Monday.Ms Greening expressed her pleasure on the overall progress Pakistan was making particularly in the taxation sector.

Defence budget cannot be revisited: Dar

 

WASHINGTON: Federal Minister for Finance Senator Muhammad Ishaq Dar said on Monday that the defence budget could not be revisited and it was incumbent upon the government to broaden the tax net.
He announced the expanding of the tax net immediately after having successfully negotiated fresh loans from the International Monetary Fund (IMF) and the World Bank here.Addressing a press conference at the Pakistan Embassy following his four-day US tour, Dar said if taxes were not raised, more loans would have to be taken.

The finance minister said loans had to be re-paid and, as such, there was no option but to broaden the tax net. Revisiting the defence budget was not possible, while salaries and pensions of government employees were already quite low and there was no room for any cuts.

In this backdrop, Dar said the only option left for the government was to increase the tax net.A spokesman for the finance ministry, meanwhile, said that the priority of the government was to increase tax revenue by broadening the tax net and by including into the system people who were not paying their due taxes. He said in the first nine months of the currentyear, the government achieved around 17 percent increase in the tax collection as compared to the last year.

Ishaq Dar also said that things were shaping up for Pakistan’s economic boost as macroeconomic stability had earned the country huge confidence of international investors and financial institutions.

Wrapping up a hectic visit to Washington, during which he had a series of meetings with World Bank, IMF and US officials, Dar said that major financial institutions now agreed with Islamabad that Pakistan’s GDP growth would surpass their earlier projections.

“The World Bank and the IMF now agree that the country would chalk up a better economic growth than earlier projections and our projection for the year is 4 percent plus,” he told Washington-based Pakistani journalists.

Earlier, Ishaq Dar held a very productive meeting with Ms Justine Greening, British Secretary of State for International Development in the World Bank, at Washington DC on Monday.Ms Greening expressed her pleasure on the overall progress Pakistan was making particularly in the taxation sector.

Govt to spend $34 billion for key infrastructure development: Dar

 

ISLAMABAD: Federal Minister for Finance, Senator Mohammad Ishaq Dar on Tuesday said that the government would spend $34 billion in the next four years in various sectors of economy particularly for the expansion of motorways, power transmission lines and development of energy sector.
Talking to Minister of Finance of the Canadian Ontario Province, Charles Sousa, who called on him, Dar said that his government was determined to pursue very aggressive infrastructure development program in the country to help accelerate economic growth.

“The government is determined to pursue the policy of transparency, good governance and zero tolerance for corruption besides fulfilling its election manifesto by prioritising four ‘E sectors’ that include Education, Economy, Energy and Eradication of Extremism,” Dar said.

The finance minister also briefed Sousa about the introduction of 3G and 4G technologies in a transparent process, which would attract massive investments in the telecommunication sector. He expressed his determination to correct the existing energy mix in Pakistan as currently, 75 percent source of energy is furnace oil, due to which per unit cost has become exorbitantly high. Hence, the government intends to give priority to clean energy, he said.

Dar expressed voiced hope that the Canadian companies would invest in hydro projects as they have tremendous expertise in this field. He stated that the government has signed a 2,000MW nuclear power plant agreement with China and was negotiating for additional 3,000MW plant on BOT mechanism. While speaking about the security situation of the country, the Finance Minister underscored the need for giving dialogue a last chance.

The minister said that he will be presenting his second budget in June, 2014, adding although Pakistan’s GDP has been growing at three percent for the past few years, this year the growth is expected to be four percent. However, the target of 6% growth is likely to be achieved in the next few years owing to various economic reforms being undertaking by the present government, he added.

On the occasion, Sousa expressed the hope that by following robust and vigorous economic agenda, the government would certainly overcome economic difficulties, which would, in turn, pave the way for more foreign investments, both by expatriate Pakistanis and foreign companies. He stated that the better economic condition was the best way to give hope to the people, which would help reduce illiteracy and extremism.

Sousa appreciated Pakistan’s positive role in the post 9/11 war against terrorism and deplored criticism against Pakistan in this regard. He said that the Ontario government was pursuing a practical ‘energy mix’ policy adding the 50 percent source of energy was nuclear, followed by hydro and gas while the green energy constitutes only 6 percent.

Sousa stated that the Ontario government greatly admires Pakistani businessmen, entrepreneurs, doctors, engineers, accountants and other professionals, who have been making valuable contributions to the Canadian economy and society.

He said that he will be presenting his second budget as the Finance Minister and to boost the economy and employment the government is proposing to spend C$11.3 billion more than the previous year.

Pakistan’s economy on right track, says Dar

NEW YORK: Finance Minister Ishaq Dar has claimed that Pakistan’s economy was on right track, Geo News reported on Tuesday.

Addressing a public gathering of the ruling Pakistan Muslim League-Nawaz, he said that US investors had shown keen interest in Pakistan’s international bond.

He said that the investors had offered to invest over one billion dollars in the international bond.

The minister said that up to seven million dollars program would be approved by the World Bank at the end of next month.

Forex reserves cross $10 bn mark: Dar

ISLAMABAD: The foreign exchange reserves of the country have crossed the threshold of $10 billion on March 31 as the government has strengthened the foundation of the economy, said Finance Minister Senator Ishaq Dar in an official statement on Tuesday.

The minister claimed that after repayment of the power sector circular debt of up to Rs500 billion in 45 days and strengthening of the value of the Pakistani rupee, the government had fulfilled its commitment.

The total liquid reserves stood at $10.072 billion, he said, adding the net reserves with the State Bank of Pakistan were $5.365 billion.He said a solid foundation for economic uplift of the country had been laid down and building of foreign exchange reserves will bring in stability and strength to the economy. He said that Pakistan had an encouraging macro-economic framework and this will lead to enhanced confidence in Pakistan by foreign investors, the international community and institutions in energy and infrastructure projects.

Govt following three-point agenda to spur growth: Dar

ISLAMABAD: Federal Minister for Finance, Senator Mohammad Ishaq Dar on Saturday said that the government was pursuing a three-point agenda, focused on addressing economy, energy and extremism to put the country on path of progress.

In a meeting with Managing Director (MD), World Bank Group, Sri Mulyani Indrawati, the minister said the prime minister has an agenda of addressing the core impediments hampering economic growth in consonance with its true potential.

“Our efforts have started yielding results in addressing long-delayed issues and pulling the country out of its economic woes,” he remarked.

The finance minister highlighted that the macro-economic situation was improving as reforms are making progress; growth is picking up and inflation is in single digits. He said that besides appropriate economic measures, the government was working on a plan to develop infrastructure and meeting the requirements of energy demand in the country. Dar thanked the MD for her personal interest in Pakistan-related programmes including CASA1000 and Dasu hydropower projects. He also spoke about landmark steps the prime minister recently announced with the objective to generate business opportunities for the youth and assist them in attaining educational excellence.

He said that changes were being contemplated in relevant tax laws for permanently eliminating the discretion of Federal Board of Revenue (FBR) to issue special tax exemptions. He said that the measures will lead to enhanced revenue generation and the country will be able to spend more on the development programmes. He underscored that Privatization strategy was in place to provide a holistic framework for disinvesting public sector assets.

The finance minister informed that good governance, transparency and zero tolerance for corruption remains the hallmark of the government in pursuing strategic partnership with the private sector in PSEs.

Dar said that the prime minister has an agenda of addressing the core impediments that are hampering economic growth. The finance minister said that the government has embraced a proactive energy policy to invite new investment in energy sector with a special emphasis on the renewable and cheap energy sources. He emphasised that the international assistance will help the government in addressing poverty and socio economic uplift of the people.

On the occasion, the WB MD appreciated the economic policies of the government and said that World Bank will help Pakistan in poverty alleviation and promoting shared prosperity for the people of Pakistan. She said that Pakistan has an encouraging macro-economic framework and this will lead to enhanced confidence in Pakistan by international community and institutions. She also appreciated increased allocation for social safety network programmes.

She said that Pakistan has strong support of the World Bank for its economic revival under its leadership and expected fast track progress on energy projects. She mentioned that the focus of the World Bank will remain on tackling the energy crisis, increasing economic opportunity for women and youth and improving service delivery.

She also informed the finance minister that the World Bank would consider Country Partnership Strategy (2014-19) for Pakistan on May 1 this year. She said that participation of the private sector in energy sector reforms will be a strong message to the foreign investors and one success in this regard will lead to another success. She wished success for Pakistan in launching of Eurobonds in the international market and auction of spectrum licenses.

No increase in salaries, pensions, Dar tells NA

 

ISLAMABAD: Minister for Finance Senator Ishaq Dar reiterated on the floor of the National Assembly on Wednesday that the $1.5 billion which Pakistan had received was a gift from a friendly country with no economic or political strings attached and it should not be viewed with suspicion.
“It is a gift to Pakistan and the Pakistani people by a friendly country, as was given in 1998 when $2 billion of free oil was given after restrictions were imposed on us for conducting nuclear tests, which were carried out by the Nawaz Sharif government,” Ishaq Dar, while making a policy statement and responding to points of order in the National Assembly, said.

He maintained that he was giving this statement on behalf of the prime minister and the PML-N government with complete responsibility that the armed forces would not be sent to any country for any kind of cooperation. “I can say this with complete responsibility on behalf of the prime minister and the PML-N government that neither are we sending troops to any country nor Pakistan will supply arms and ammunition to any country as the army would not be used against the country’s interests,” Ishaq Dar said adding Pakistan had a clear a foreign policy in this regard.

He told the house that neither did the $1.5 billion come to Pakistan in a hidden way nor had it begged for the same. “The country’s bank received two instalments of $750 million each on February 19 and March 7,” the finance minister said.

He also maintained that the increase in salaries and pensions in the budget for fiscal year 2014-15 was not under consideration.The opposition members, including the PPP’s Syed Naveed Qamar, PTI’s Shah Mehmood Qureshi, MQM’s Farooq Sattar and PkMAP’s Mehmood Khan Achakzai, following the statement given by the finance minister, looked somewhat satisfied saying Pakistan should stay away from any proxy war.

“Instead of getting involved in any proxy war, Pakistan should improve relations with neighbouring countries,” Achakzai said.Naveed Qamar, however, spoke some harsh words saying the so-called gift had been given by Saudi Arabia. He said those who talked about breaking the begging bowl had been trying to fool the masses.

Shah Mehmood Qureshi said that a categorical statement should come from the prime minister or defence minister that there were no strings attached to the $1.5 billion.Farooq Sattar was of the view that no country could give $1.5 billion as a gift without any conditions. “If your diplomacy is good, why did you not get even one-third of this gifted money from Iran,” he asked.

The finance minister advised the opposition members to be careful while talking on such issues or the friends of Pakistan would be hurt.He said that the gifted money from the friendly country would be kept in the Pakistan Development Fund (PDF) and would be spent on uplift of infrastructure like roads and railways in the next four years.

While talking about the planned uplift and development of infrastructure, Senator Dar particularly mentioned the extension of the motorway up to Karachi saying it would cost Rs800 billion. “It is the dream of the prime minister to extend the motorway to Karachi,” he said.

The finance minister told the house that it was due to the government’s policies that Pakistan would float the Euro Bond in the international market in the first week of next month, keeping in view the confidence expressed by the foreign investors, and expressed the confidence that the exercise would help in garnering $500 million.

He said when the present government took over, the economic indicators were a matterof concern for it saying the fiscal deficit was 8.8 percent while the tax to GDP growth rate was just 8.5 percent.

He said that he was also ready to give details of the measures taken to strengthen the national economy. For this purpose, he said the government had to take some painful decisions but the tax collection had also increased by 17 percent.

Regarding the increase in electricity tariff for the month of March, he said it had to be done on account of fuel adjustment charges.At the same time, he pointed out that the government would have to pay subsidy between Rs250 to Rs270 billion to consumers using electricity up to 200 units. “So far we have paid Rs167 billion subsidy to such consumers,” he said.

Gadani Power Park to be completed on war footing: Dar

ISLAMABAD: Federal Minister for Finance Senator Ishaq Dar on Sunday directed Economic Affair Division Secretary Nargis Sethi to complete the Gadani Power Park on war footing.

This has been disclosed by Economic Affairs Division (EAD) Secretary Nargis Sethi who is also Chief Executive Officer of the project of paramount importance here in a meeting with Finance Minister Senator Muhammad Ishaq Dar about issues pertaining to Gadani Power Park.

Nespak (National Engineering Services of Pakistan) is preparing PC-I for the whole project of 6,600MW Gadani Power Park in Balochistan that will also include construction of jetty and related infrastructure.

Nargis Sethi briefed the finance minister about the broad framework of the project. She informed that the site of the Park was ideal as it converged at the available industrial infrastructure at Hub and very close to Karachi.

She said that the Park would include ten coal-based power projects, ash disposal units, residential area, schools and play areas. She informed the finance minister that Nespak is preparing PC-I for the whole project which would include construction of jetty and related infrastructure.

The finance minister emphasised that as this was the flagship project of the PML-N government therefore it should be placed on fast track.

He said that ultra super technology should be used and detailed study from independent sources should be carried out. He said that the resource envelope was limited and they had to operate within the available resources.

He underlined that domestic private sector resources would be encouraged on BOT basis. He appreciated that this was the least cost energy generation model which would meet the short to medium term energy requirements.

The finance minister also directed the IPDF (infrastructure project development facility) to work in close collaboration with project director at Gadani project.

\He urged for putting on fast track Jamshoro coal fired project for which funding was already available from the Asian Development Bank (ADB).

Dar directs IPDF to come up with clear ideas on doable projects

ISLAMABAD: Minister for Finance, Mohammad Ishaq Dar here on Saturday directed the Infrastructure Project Development Facility (IPDF) to come up with clear ideas on doable projects in both energy and infrastructure development sectors.

The minister chaired a meeting of IPDF to discuss professional functioning of the Facility and get a briefing on doable projects in energy and infrastructure development.

In the detailed presentation IPDF team explained that Public Private Partnership model can be put in place in energy and infrastructure development sectors of the country on Build-Operate-Transfer (BOT) model.

They said that there is huge potential in these sectors and if properly employed it can not only save valuable foreign exchange for the country but would also generate economic activity in the country.

The IPDF Chief Executive Officer, Adil Anwar presented comparative study of Karachi-Lahore Motorway, Deep Sea Jetty and a number of energy related projects on PPP model.

The Finance Minister said that IPDF must come out with clear ideas on doable projects in both energy and infrastructure development sectors.

He said that IPDF should focus on stand alone energy projects in remote areas of the country with special focus on employing the potential in solar and wind energy generation.

Moreover, clear concepts on setting up of domestic solar panel industry should also be evaluated, he added.

The minister said that transparency and competitiveness should be the hallmark of the Public Private Partnership and instead of consuming PSDP local investors should be encouraged in infrastructure development.

Ishaq Dar emphasized that the professional work of IPDF should be directed at offering well prepared services to the public sector in designing of new projects and rehabilitation of the projects which are not delivering up to their maximum capacity.

He said that in line with the manifesto of the PML-N the projects should focus on domestic investment and local employment generation in both urban and rural areas.

"We will have to work hard to materialize the growth targets and economic development in the country", he added.