Finance minister Syed Naveed Qamar on Friday announced an 'indigenous package' for stabilisation of economy, with main focus on deletion of all kinds of subsidies by June 30, 2009. He unfolded here at a crowded press conference salient features of what he called a 'crucial package' to pull the economy out of bad patch.
He also announced upward revision in import duty of 350 items, besides raising the letter of credit (LC) margin for a fairly large number of items imported under different schemes. The minister said that the economic situation demanded some harsh steps to discourage import of luxurious or non-productive items.
-- Duty on 350 items, L/C margin on many items raised
-- Finance Minister unveils package for economic stability, rules out seeking IMF assistance
-- Package to bring about macroeconomic stability, bring down fiscal and C/A deficits and to protect reserves
He said the government policy of taking short- and medium-term measures for stablisation of the economy had worked up to its expectations. He said that the upward trend in remittances, revenue and exports during the first two months of the current fiscal year was indicative of some improvement in the economy, and the 'package' would do the rest to bring the economy back on track.
He said that the government had managed to eliminate subsidy on oil, and now its focus was on removing power sector subsidy. He claimed that the economic stabilisation 'package' has been prepared after three to four months' homework. He added that the government had inherited economic crisis and in a short span of time it not only had weathered the financial storm but also had stabilised the weak economy.
He said that the wrongdoings of respective governments in the last one decade had pushed Pakistan into serious economic crisis but the PPP-led government was up to the job of resolve the problems in the shortest possible span of time.
Naveed said that the donors had been consulted on the economic stablisation 'package' for keeping them in the loop on the decisions being taken by the government for overcoming the financial crisis. He said he was confident that the economic stablisation package would provide a window to all sectors of the economy for playing their due role for generating economic activities.
The minister reiterated that IMF was not an option for Pakistan for seeking financial support. He said the government would encourage investment in agriculture and industrial sector for addressing the issues of poverty and unemployment. He said a positive response from Saudi government for getting oil facility against deferred payments was expected soon. He said the government would maintain a comfortable level of reserves to meet the imports requirement for a particular period. He said the government would rely on its resources to meet the funds demand for the current year Public Sector Development Programme (PSDP).
He also hinted at a changed strategy for raising money to plug in huge current account deficit. He said that instead of borrowing massively from the State Bank of Pakistan (SBP) and then facing its inflationary impact, the government would opt for raising money through saving schemes, PIBs and other tools. He also hinted at raising money from privatisation of public sector entities like OGDC.
He also announced upward revision in import duty of 350 items, besides raising the letter of credit (LC) margin for a fairly large number of items imported under different schemes. The minister said that the economic situation demanded some harsh steps to discourage import of luxurious or non-productive items.
-- Duty on 350 items, L/C margin on many items raised
-- Finance Minister unveils package for economic stability, rules out seeking IMF assistance
-- Package to bring about macroeconomic stability, bring down fiscal and C/A deficits and to protect reserves
He said the government policy of taking short- and medium-term measures for stablisation of the economy had worked up to its expectations. He said that the upward trend in remittances, revenue and exports during the first two months of the current fiscal year was indicative of some improvement in the economy, and the 'package' would do the rest to bring the economy back on track.
He said that the government had managed to eliminate subsidy on oil, and now its focus was on removing power sector subsidy. He claimed that the economic stabilisation 'package' has been prepared after three to four months' homework. He added that the government had inherited economic crisis and in a short span of time it not only had weathered the financial storm but also had stabilised the weak economy.
He said that the wrongdoings of respective governments in the last one decade had pushed Pakistan into serious economic crisis but the PPP-led government was up to the job of resolve the problems in the shortest possible span of time.
Naveed said that the donors had been consulted on the economic stablisation 'package' for keeping them in the loop on the decisions being taken by the government for overcoming the financial crisis. He said he was confident that the economic stablisation package would provide a window to all sectors of the economy for playing their due role for generating economic activities.
The minister reiterated that IMF was not an option for Pakistan for seeking financial support. He said the government would encourage investment in agriculture and industrial sector for addressing the issues of poverty and unemployment. He said a positive response from Saudi government for getting oil facility against deferred payments was expected soon. He said the government would maintain a comfortable level of reserves to meet the imports requirement for a particular period. He said the government would rely on its resources to meet the funds demand for the current year Public Sector Development Programme (PSDP).
He also hinted at a changed strategy for raising money to plug in huge current account deficit. He said that instead of borrowing massively from the State Bank of Pakistan (SBP) and then facing its inflationary impact, the government would opt for raising money through saving schemes, PIBs and other tools. He also hinted at raising money from privatisation of public sector entities like OGDC.
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