Modi government makes economic revival 'paramount' goal

NEW DELHI: India´s new government pledged Monday to make the revival of the flagging economy its "paramount" target as it laid out its legislative agenda following Prime Minister Narendra Modi´s landslide election victory.

In an address to the two houses of parliament which was drawn up by Modi´s new cabinet, President Pranab Mukherjee said India´s economy faced "extremely difficult" times and that inflation was "unacceptably" high.

The speech also included a series of ambitious policy goals that had been laid out in the election manifesto of Modi´s Bharatiya Janata Party (BJP), including the creation of 100 new cities and a revamp of the railway network. "The country is passing through an extremely difficult phase on the economic front," said Mukherjee. "Putting the economy back on track is paramount for my government."

"My government will strive to get India on a high growth path, reign in inflation, restart the investment cycle....(and) restore investor confidence," he said.

India´s economy has been growing at below five percent for the past two years, way below the level needed to lift millions of people out of poverty, while inflation is currently running close to nine percent.

Modi´s right-wing BJP, which thrashed the ruling centre-left Congress party in marathon polls in April and May, made reviving the economy the main platform of its campaign as well as promising to clean up government.

In the speech, the president said that "my government ... will be predictable, transparent and fair" and "was committed to providing a clean and efficient administration focused on delivery".

The government would "make every effort" to fulfil its pre-election promise to bring in a new general sales tax and would also "embark on rationalisation and simplification of the tax regime" to make it less "adverserial", Mukherjee said.

Economic growth has increased but most targets couldn’t be met

 

ISLAMABAD: Federal Minister for Finance Senator Ishaq Dar has conceded that the government has missed major economic targets of GDP growth, revenue, investment and inflation in the outgoing year.
The GDP growth remained at 4.14 percent against a target of 4.4 percent but in the last six years, this is the first time that Pakistan registered over 4 percent growth against the revised target of 3.7 percent, taking the per capita income up to $1,386 in 2013-14 from the revised target of $1,369 in 2012-13. Tax collection remained at 16 percent and inflation increased by 8.5 percent and unemployment registered an increase of 6.2 percent.

Announcing the results of the Economic Survey at a news conference, the finance minister said in the first year of its rule, the government spent its time in fire fighting and in the second financial year, which is 2014-15, the masses will be witnessing dividends of the prudent economic policies.

The minister said that he himself fixed the aggressive economic targets for 2013-14 so that the government could not remain complacent and because of hard work and good economic governance, the government had performed well in terms of achieving the GDP growth of 4.14 percent.

He vowed to increase the GDP growth by 1 percent every year and said that the size of the GDP had swelled close to $300 billion. The minister said the unemployment rate had increased to 6.2 percent from 5.9 percent from 2009-10. He stated that the impact of the war against terrorism remained at $102 billion and 50 percent of the population was living below the poverty line of $2 a day income.

“The vulnerable segments of the society will be taken care of and it was I who first proposed the Benazir Income Support Programme as target subsidy to provide solace to the poorest of the poor. The last government in five years time increased the BISP allocation from Rs34 billion to just Rs40 billion,” he said.

However, the government has increased the allocation under the Benazir Income Support Programme to Rs75 billion in the current financial year, which will be increased further in the next budgetary year. Next year, the government will provide financial help to 4,700,000 poor people.

Coming to the GDP growth analysis, the minister said that the overall industrial growth remained at 5.84 percent in the first nine months against 1.37 percent in the same period of the last year. He said the Large Scale Manufacturing (LSM) sector grew by 5.31 percent as against 4.1 percent last year.

The construction sector grew tremendously by 11.3 percent in the first nine months of the current financial year as against the negative growth of 1.7 percent in 2012-13.

Electricity generation and gas distribution sector grew by 3.72 percent against the negative growth of 16.3 percent in the last financial year. “This has really helped increase growth of the industrial sector.” He said growth in small and household sector stayed at 8.4 percent against the growth of 8.3 percent in the same sector last year.

However, the Economic Survey said during 2013-14, energy consumption was 40,185 million TOEs compared to 40,026 million TOEs in 2012-13 showing a growth of 0.4 percent. Now the industrial growth could be questioned with an increase in electricity consumption by 0.4 percent.

However, the minister admitted the agriculture sector growth remained very low at just 2.1 percent against 2.88 percent last year. However, in the next budgetary year, the government will come up with alluring incentives to increase the growth in agriculture sector.

Dar said the growth in important crops remained at 3.7 percent as against 1.2 percent last year. Other crops that included oil seeds and pulses showed negative growth at 3.5 percent as against 6.1 percent last year. He said that the country also witnessed a reduction in growth as cotton production remained at 12.77 million bales against 13.03 million bales.

The minister said that for agriculture sector, the government allocated Rs380 billion for the current year against Rs315 billion last year. Next time the government will increase the credit lines for the agriculture sector. He also mentioned that fertilisers also remained short and the government had somehow managed to provide the imported fertilisers at Rs1,786 per bag plus Rs25 of dealers margin. “We brought down the prices of fertiliser from Rs1,952 per bag to Rs1,786,” he said.

Mentioning the services sector, the minister said that this sector failed to perform up to the expectations as it grew by 4.3 percent against the growth of 4.9 percent in the last financial year.

In transport, storage and communication sector, the growth remained at 3 percent against 2.9 percent, in wholesale and retail trade 5.2 percent against 3.4 percent, finance and insurance 5.2 percent against 9 percent, housing services remained at 4 percent against 4 percent last year and growth in general government services tumbled by 2.2 percent against 11.3 percent and in other private sector, the growth stayed at 5.8 percent as against 5.2 percent.

About inflation, the minister said that during the July-April period, it remained at 8.8 percent against 7.75 percent last fiscal. However, till May this year, inflation remained at 8.6 percent as against 7.5 percent. About the core inflation which he termed very important saying it remained at 8.2 percent against 9.7 percent in 11 months of the outgoing fiscal.

The minister also said that government borrowing had reduced and the monetary policy had improved. Highlighting the exports of the country, he said that exports had increased by 4.24 percent to $21 billion in the last 10 months against $20.1 billion in thesame period last year and because of the GSP Plus, the textile sector grew by 7 percent and raw cotton export 42 percent. However, it would have been better if the value addition had been added and finished products exported instead of exporting raw cotton. However, the imports, the minister said, had increased by 1.2 percent to $37.1 billion from $36.7 billion in 2012-13. Dar mentioned the reason for the increase in exports saying that plants and machinery had been imported on a large scale, which is in a way a positive sign for growth in economy.

Investment to GDP has reduced to 13.99 percent from 14.57 percent of GDP last year. Fixed investment has also tumbled to 12.39 percent of the GDP against 12.79 percent. Out of this, the private investment remained at 8.94 percent against 9.64 percent of GDP. Dar said that total investment was recorded at Rs3,276 billion in 2012-13, which increased to Rs3,554 billion in 2013-14. The minister said that Foreign Direct Investment (FDI) had reached $2.979 billion that also included the $2 billion Euro Bond. However, in the last year in the same period it stood at $1.277 billion.

Talking about the foreign exchange reserves, the minister said that reserves had reached $13.66 billion against $11.4 billion. He mentioned in February last year, the reserves stood at just $7.5 billion out of which the central bank reserves were at $2.7 billion. Now the situation had completely changed as right now the State Bank of Pakistan reserves had reached $8.8 billion whereas the reserves of commercial banks were stagnant at $4.8 billion.The growth in remittances has slightly reduced to $12.894 billion from $13.921 billion.

Nigeria promises adequate security for World Economic Forum

Nigeria on Friday assured that it will provide adequate security arrangements during the World Economic Forum on Africa, which begins May 7 in Abuja.

The government would provide adequate security for participants, Minister of Finance Ngozi Okonjo-Iweala told a news conference in Abuja, the country’s capiotal, Xinhua reported.

His remark came after some countries expressed concern over security issues, following a blast in Abuja, which left at least 19 people dead.

Ms. Okonjo-Iweala said President Goodluck Jonathan would make a statement on the forum and security issues shortly.

“I think that by the time we hear some of the security measures that the president is going to announce, we will see that we calm the nerves of those who are proposing to come,” she added

Economic murder of workers unacceptable: LPC

LAHORE: Journalists on Monday continued their symbolic hunger strike camp for the second consecutive day in front of the Lahore Press Club to condemn a murderous attempt on senior journalist Hamid Mir and a possible action against the Geo TV.

LPC President Arshad Ansari, LPC Secretary Muhammad Shahbaz Mian, Joint Secretary Farzana Ch, senior journalist Khawar Naeem Hashmi, Shafiq Awan, Wasif Nagi, LPC Governing Body Member Qamaruz Zaman Bhatti, Imran Sheikh, Punjab Union of Journalist President Waseem Farooq, Imtiaz Rashid, Gohar Butt, Maqsood Butt, Javed Farooqi, Maqsood Awan, Mian Abid, Zulfiqar Ali Mehto, Waseem Babar, Advocate Malik Feroz and other lawyers participated in the camp set up under the banner of the Lahore Press Club.

Addressing the participants, Arshad Ansari said it was highly condemnable that nine days had passed since the murderous attempt on Hamid Mir, but the culprits were still at large. He announced that till the attackers were not arrested, their strike camp would continue. He said the journalists community would not tolerate any action against the Geo TV for the cause of the freedom of expression. He said the economic murder of media workers could not be allowed. He said the whole community would stand by all journalists and media houses in testing times. He said from April 30, the members of all press clubs of the country would reach Lahore and the whole community would organise rallies and demonstrations for four consecutive days from May 1.

He said conspiracies were being hatched on a daily basis to curb the Geo but the journalists community stood united with the Geo to foil all such attempts. He said a rally would be organised on May 2 in favour of the freedom of expression and a procession would proceed on May 3 from the Lahore Press Club to the Punjab Assembly.

Shahbaz Mian said the journalists community was not divided on the issue of Hamid Mir and would foil all conspiracies in this regard.

Punjab Bar Council Member Malik Sarwar said journalists and lawyers had supported each other in strengthening democracy in the country and the same would be continued in future as well.

Forum for International Relations and Development Chairman Taha Qureshi said the media had paid a heavy price for the sake of democracy and no one could curb its freedom. He said his organisation would not support any action against the Geo TV.

Our Peshawar Correspondent adds: The newly elected body of the Peshawar High Court Bar Association (PHCBA) on Monday termed the attack on the Geo News anchor Hamid Mir as an assault on the freedom of the press and asked the government to arrest the assailants forthwith.

PHCBA newly elected Secretary General Muhammad Ayaz Khan told The News that the Jang Group had played a historic role for the independence of the judiciary and restoration of democracy.

“After the successful lawyers’ movement, all of us including the media, civil society and lawyers were under attack on various fronts. The media had given full support to the lawyers’ movement and now lawyers would stand by the media in this difficult time,” he added.

PHCBA’s new President Muhammad Isa Khan said that freedom of the press was the need of the hour, but freedom of expression should be under the law and as per the Constitution. He said unlawful acts of the government against freedom of the press were not acceptable.

About his newly elected team’s work plan, he said his first priority would be to establish good working and cordial relations between the bar and the bench. He said the cause list in the PHC was too long and sometime cases were adjourned without hearing.

“My effort would be to reduce the cause list so that there is enough time to hear each case,” he said, adding that important and urgent cases should be heard in one or two days. He said due to the backlog of work the vital cases were also fixed for hearing in a week or two.

He said the lawyers in the provincial capital were facing car parking problem, lack of bar rooms and various unresolved legal issues with the Khyber Pakhtunkhwa Bar Council.

He said he would try to stop pre-poll rigging in the PHCBA election. He claimed that in every election the presidential and other candidates deposit the membership fee of the voters that is in thousands.

“I would try to issue lifetime PHCBA membership. It would not only end pre-poll rigging, but also eliminate the stigma from the lawyers of defaulting on payment of dues,” he said. He added that the new body would also try to discourage the role of non-practicing lawyers in the bar associations.

Ayaz Khan, the PHCBA general secretary, said he would try to introduce a system of assistance to the families of those lawyers who became handicapped or their practice was affected due to illness.

In the PHCBA election on Saturday, Muhammad Isa Khan, a presidential candidate of the Muttahida Lawyers Panel won by securing 684 votes. His rival Muzammil Khan, who was a joint candidate of the People’s Lawyers Forum (PLF) and the ANP-affiliated Malgari Wakeelan, got 616 votes.

Muhammad Ayaz Khan, the joint candidate of PLF and Malgari Wakeelan won the election as secretary general by obtaining 583 votes. His rival Hazrat Said got 376 votes.

Jamal Afridi, the candidate of Muttahida Lawyers Forum won the election as vice president by securing 607 votes. He defeated Irshad Ahmad Durrani who got 443 votes. Kashif Jan was elected as the joint secretary by obtaining 732 votes. His rival Imad Anjum Durrani got 523 votes.

Wajid Hussain won election for the office of finance secretary by getting 736 votes. Ziaul Hassan was elected the press secretary. A female lawyer, Gul Naz won election as member of the executive committee with 372 votes

China to start work on economic corridor shortly, says Li

BOAO: Chinese Premier Li Keqiang has said China was ready to start the work on long-term plan of building a bilateral economic corridor by the end of this year.

In a meeting with Prime Minister Nawaz Sharif on the sidelines of the Boao Forum for Asia (BFA) annual conference, Li said the two countries had agreed to build the corridor with bilateral practical cooperation.

He called for forging a “China-Pakistan community of Shared Destiny”, the Xinhua news agency reported. The corridor connecting Kashgar in China to the southwestern Pakistani port of Gwadar was proposed in an agreement between the two countries reached during Li’s visit to Pakistan in May 2013.

China would work with Pakistan to provide financial support for the construction of the corridor, he said. China would also like to enhance cooperation with terrorism, Li said, and hoped Pakistan would provide security for Chinese organisations and workers.

Prime Minister Nawaz said Pakistan would focus on promoting the corridor’s construction and would spare no effort to safeguard Chinese people and organisations. The prime minister said Pakistan was ready to further strategic cooperation to China and noted the relationship with China was the “cornerstone” of Pakistan’s diplomacy and the two countries were long-tested friends.Pakistan would make concerted efforts with China to fully implement cooperative deals between the two sides, he said.

Regional peace prerequisite to economic development: PM

SANYA: Prime Minister Nawaz Sharif has urged the Asian countries to wage coordinated efforts for realization of the goal of economic prosperity.

He was delivering his keynote address at the Boao conference in China's Hainan province Thursday.

Nawaz said top priority should be given to the resolution of disputes as regional peace is a prerequisite to economic development.

The Prime Minister particularly appreciated China's economic revival and growth in the last several years.

Nawaz Sharif said the Asian countries should particularly focus on regional connectivity to strengthen mutual contacts through road, sea, and train links.

He said Pakistan-China Economic Corridor would open new avenues for the development in the region.

The Prime Minister said the Asian countries should take effective steps to tap the energies of their youth.

He said the Pakistani government has started the Prime Minister's Youth Business Loans scheme and announced scholarship for youth to integrate the youth into the national economic mainstream.

Nawaz Sharif said the government is also concentrating on overcoming the energy shortfall to ensure its economic development.

The Prime Minister said Pakistan has emerged from the lengthy war on terror, which has negatively affected its economy, trade and industry.

Chinese Prime Minister Li Keqiang in his speech has called for strengthening of cooperation among the Asian countries.

He stated this while inaugurating the Boao conference in China's Hainan province this morning. It has been organised by Boao Forum for Asia.

The Chinese Premier said that development remains the top priority of the Asian countries.

He emphasized the need for shared interest and common development of the regional countries.

Li Keqiang said Boao Forum is significant for the economic development of Asia.

PM for speedy development through best economic decisions

LAHORE: Prime Minister Nawaz Sharif on Saturday directed the government functionaries to take the best economic decision to ensure proper use of each and every penny from the national exchequer.
He was speaking at a briefing regarding Ravi Zone development and conservation of archaeological sites, including Jahngir Tomb, at his Raiwind residence on Saturday.
Chief Secretary Punjab Naveed Akram Cheema, Chairman Planning and Development Department Irfan Elahi, Commissioner Lahore Rashid Langrial, LDA Chairman Ahad Cheema, two Singapore based consultants engaged in conservation of Jahangir Tomb and other senior officials of the government were also present.
The Prime Minister said experts and consultants from the private sector should be engaged in development works to ensure the maximum utilization of available resources and achieving a goal of development in the shortest possible time.
He said the public private partnership could be among the best options for reducing financial burden of big projects on the government and getting an efficient and better outcome.
He said `high end areas' should be developed in big cities, including Lahore, keeping in view models from the developed world for allowing construction of multi-storey buildings.
He stressed the need of adopting the best `commercial leverages' for enhancing value of the government's lands so that the land resources of the public sector could be used in the best interest of the masses.
Talking about residents of poor localities, he directed officials of development authorities to take steps for providing the best organized living facilities to people residing in unorganized areas.
"It is a social obligation to provide the best living facilities to people of unorganized areas and the government would do its best in this regard," he said.
Nawaz Sharif got a detailed briefing on steps to improve water table of Lahore and directed the Lahore Development Authority (LDA) to prepare proposals on economically viable options in this regard.

No economic progress in Pak, without tapping economic potential of women: EU

ISLAMABAD: The European Union (EU) and its Member States said on Friday that there could not be a sustainable economic growth without tapping the economic potential of women in Pakistan.
The EU High Representative Catherine Ashton in a statement here on the occasion of international women day, called for removing all obstacles in way of women to enable them 'play a pivotal role' in Pakistan society.
"We will continue to work with all concerned stakeholders to promote the rights and empowerment of women in Pakistan. The EU Guidelines on violence against women and girls and combating all forms of discrimination against them, address discrimination as well as violence against women," said an EU statement.
This year, the EU and its Member States are highlighting women's empowerment in Pakistan. In close cooperation with the Suleman Dawood School of Business (LUMS), the Netherlands Embassy, on behalf of the EU, is sponsoring a mentoring event titled "Women Mentoring Women in Business".
"We bring together ten female business mentors with fifty female business students from ten business schools in Lahore with the aim of enhancing women's leadership role in business," it said.
It said protecting and promoting women's rights is a priority in the EU's foreign policy. The EU Plan of Action on Gender Equality and Women's Empowerment in Development 2010-2015 aims to accelerate the achievement of the MDGs.
This plan will also to attain the goals set out by CEDAW, the Beijing Platform of Action, and the Cairo Programme of Action, while improving coordination to increase impact on the ground. Gender Equality and Women's Empowerment is mainstreamed in all our actions.

Positive economic indicators showing signs of revival: Dar

ISLAMABAD: Federal Minister for Finance, Senator Mohammad Ishaq Dar said on Tuesday that all major indicators of economy are pointing to the fact that economy has begun to show signs of revival for moving on the right track.

This he said while meeting with a delegation of Gujranwala Chamber of Commerce accompanied by Federal Minister for Commerce, Khurram Dastagir Khan who met with Ishaq Dar here at the Finance Ministry.

The Finance Minister said "we all have to pay taxes and by paying taxes we can increase energy supply and public sector development programme".

He said that taxes and documentation will go along and the government will employ necessary measures to facilitate exporters.

He also mentioned that it is very heartening to note that there is 17 percent increase in revenue collection.

On government's part, he said that it has adopted austerity measures and implemented 30% current expenditure cut by all Federal Ministries.

He added that the government has also abolished discretionary fund of the Prime Minister and the Federal Ministries.

Finance Minister assured the Chamber that a permanent Commissioner Appeals will be posted in Gujranwala to facilitate the business community.

He said that the government is trying to remove impediments in the way of business community that will help increase our exports.

"We will work with the business community to achieve our export targets", he said adding that the government is working on a plan to improve power and gas supplies.

Noman Salauddin, President, Gujranwala Chamber of Commerce, on behalf of the Chamber, congratulated the Finance Minister on attaining GSP Plus status for Pakistan that would go a long way in increasing the exports.

He said that small and medium industry of Gujranwala will also benefit from this status.

The delegation also informed the minister that during the last eight months power supply to industrial sector is much better and they are able to increase their productivity.

The delegation apprised the minister of the difficulties and problems being faced by the business community.

The President said that the business community wants to pay taxes and suggested improvements in return filing system and expeditious refund of general sales tax enabling the business community to perform at their maximum potential.

Moreover, Noman Salauddin also requested for the appointment of permanent Commissioner Appeals in Gujranwala. He also requested for relief to cottage, small and medium enterprises in the next budget.

He added that challenges remain on the horizon and much work remains to be done.

The Minister for Commerce expressed his appreciation for the business community in Gujranwala which is performing well in small and medium entrepreneurship. He said that we are grateful to the Finance Minister for looking into the genuine issues of the business community.

Secretary Finance Dr. Waqar Masood, Economic Advisor to Finance Ministry Rana Assad Amin, Additional Secretary Shahid Mahmood and Members of the Gujranwala Chamber and Commerce were also present in the meeting.

Pakistan’s economic future linked to Gwadar: Mushahid

ISLAMABAD: Chairman of Senate's National Defence Committee Mushahid Hussain Sayed said on Sunday Pakistan's economic future was linked to the development of Balochistan coast, particularly the port of Gwadar.
He urged the government to strengthen and upgrade Pakistan Navy, given its pivotal role in maritime security, development and national integration all along the 700- kilometre coastline.
He was talking to the media outside the Parliament House here to share details of the first-ever visit of the Defence Committee to Gwadar and Ormara, coastal cities of Balochistan.
Lauding the role of Pakistan Navy, Senator Mushahid Hussain said it was promoting national cohesion through its people-friendly policies. In this regard, he mentioned opening of hospitals and educational institutions by Navy for the people of Balochistan.
He said in the 21st Century, defence through maritime security and development through trade and economy was necessary through effective use of sea-lanes as sea power was playing the most important role in the present times. Hence, the budget of the Pakistan Navy needed to be substantially enhanced to meet the new maritime challenges.
He said all members of the Senate National Defence Committee were highly impressed with the role of people living in coastal areas like Gwadar and Ormara, who were talented, hard-working and keen on education. Despite lacking basic facilities and infrastructure, the people there had the zeal to excel.
He urged the government to invest in the area, while welcoming the effort to revive the Gwadar Port after the commercial agreement with a Chinese company to run this deep-sea strategic port.
He said if investment was made in the rich fisheries sector, its exports could go up to $ 2 billion from $ 200 million annually.

Russia risks G8 seat, economic turmoil over Ukraine: US

WASHINGTON: US Secretary of State John Kerry bluntly warned Russia on Sunday that it risked losing its seat among the prestigious Group of Eight nations, as well as economic turmoil and sanctions, over the Ukraine crisis.
The top US diplomat hit the Sunday talk shows to ratchet up pressure on Moscow, after he convened a crisis conference call with European and Canadian foreign ministers and President Barack Obama held a 90-minute phone call with Russian counterpart Vladimir Putin Saturday.
Washington and its G8 allies were prepared to slap sanctions on Moscow, Kerry said Sunday, warning of damage to billions of dollars in trade and investment in Russia, as well as possible visa bans and moves by American businesses to quit the country.
Sending troops into Ukraine's southern Crimea region, which has historically had strong ties to Russia, was a "19th century act in the 21st century," Kerry told ABC's "This Week."
Kiev's interim leaders warned Sunday their country stood on the brink of disaster, and called up military reservists after the Russian parliament voted to allow Putin to send in troops to its western neighbor.
Putin "is not going have a Sochi G8, he may not even remain in the G8 if this continues. He may find himself with asset freezes on Russian business, American business may pull back, there may be a further tumble of the ruble," Kerry warned on NBC's "Meet the Press."
Britain, and France have already pulled out of preparatory meetings for the G8, and, along with the US and Canada, have threatened to boycott the June summit.
"Russia chose this brazen act of aggression and moved in its forces on a completely trumped up set of pretexts," Kerry told CBS's "Face the Nation."
"If Russia wants to be a G8 country, it needs to behave like a G8 country."
NATO chief Anders Fogh Rasmussen warned Europe's peace and security were at risk as he opened crisis talks of the military alliance in Brussels.
But Kerry steered clear of warning of any US military action as pro-Moscow gunmen controlled swaths of Ukraine's southern Black Sea peninsula where the Kremlin has based naval fleets since the 18th century.
"The last thing anybody wants is a military option in this kind of situation. We want a peaceful resolution through the normal processes of international relations," he told NBC.
'G8 prepared to go to the hilt':
Kerry again called on Putin to de-esclate tensions, saying "Russia and President Putin are aligning themselves with this kleptocracy" of ousted Ukrainian leader Viktor Yanukovych.
"I think this is an enormous mistake for Russia," he added.
US lawmakers backed moves to suspend Russia's membership of the G8, which it joined in 1998. The Sochi summit will only be the second time that Moscow has hosted the prestigious gathering.
"President Obama needs to do something," Senator Lindsey Graham, a Republican, told CNN.
"How about this suspend Russian membership in the G8 and the G20 at least for a year starting right now. For every day that they stay in Crimea, add to the suspension. Do something."
Kerry insisted everything was on the table, including US economic sanctions, and urged Congress to work with the administration.
"The day will come where we will have to engage in that sort of activity. All options are on the table. No question but that Russia needs to understand this is serious," he told ABC.
And he warned on CBS that "the G8 plus some others are prepared to go to the hilt in order to isolate Russia with respect to this invasion."
"They're prepared to put sanctions in place, they're prepared to isolate Russia economically, ruble is already going down."
Russia's growth has already slowed to 1.3 percent in 2013, down from 3.4 percent the year before, and the ruble has lost more than eight percent against the euro since the start of the year.
Russian banks are greatly exposed to cash-strapped Ukraine, and the Fitch ratings agency warned last week that the country's state-owned financial institutions hold the bulk of total exposure of an estimated $28 billion.