ISLAMABAD: Prime Minister’s Adviser on Finance Miftah Ismail Friday said that the government was reviewing the recommendations of the Financial Action Task Force (FATF) regarding measures to tackle money laundering and terrorism financing.
While talking to reporters at the Finance Ministry, he hoped that an action plan in this regard would be ready by June, adding that the government was looking into what more could be done on that front.
To a question, the adviser said that the concerns shown by the International Monetary Fund (IMF) in a recent report regarding Pakistan’s economy are ‘correct’. He said that the current account deficit was increasing continuously and warned that in the coming years, the country’s debt will rise further. He, however, claimed that whosoever is in power will not face any difficulties in returning the debt.
The adviser said the government will mainly focus on high economic growth and controlled inflation in the budget for fiscal year 2018-19, to be announced on April 27, besides setting ambitious revenue collection targets.
He said the current account deficit was a bit higher because of import of machinery for installation at various energy projects of over 12000 MW in the country. However, he said, by the next year, the current account as well as budget deficit would remain under control as the import of such machinery would decrease while the exports will take pace. “We are below the inflation rate target of 4 per cent which is a good sign for the common people,” he said. “Our economy is growing faster than our debts. Besides, our exports are also growing fast … therefore we need not worry about it,” he added.
To a query regarding closure of the Pakistan Steel Mills (PSM), the adviser said when the mills was functioning, it was producing goods worth Rs 850 million at the cost of Rs 2 billion per month. It is not possible for the government to pay such a huge subsidy on that account, he said, adding that the total number of employees in the PSM is 10 times higher than the international practice.
He recalled that the federal government had offered the Sindh government to buy the mills for just one rupee but the provincial government rejected the offer. He termed his recent statement about selling the PSM for free to whosoever settles PIA’s losses a ‘satire’.
Regarding the circular debt, the adviser said after approval by the Economic Coordination Committee (ECC), the government will pay most of the circular debts to the independent power producers (IPPs), Gencos, Discos, nuclear power companies and the Pakistan State Oil by Monday next. He said the government will pay the IPPs on priority and they will be cleared within the next few weeks.
The adviser said the government will give relief to government employees in the budget and their salaries will be raised according to the inflation rate.
Published in Daily Times, March 17th 2018.