Pakistan to apprise donors of efforts to improve economy PDF Print E-mail
Written by Harris Badar   
Wednesday, 08 October 2008

ISLAMABAD: A high-powered delegation, headed by upcoming Adviser to Prime Minister on Finance Shaukat Tareen, will leave for Washington on Thursday morning for attending an annual meeting of Bretton Wood Institutions (BWI), the International Monetary Fund and World Bank, from October 10 to 12, The N ... ISLAMABAD: A high-powered delegation, headed by upcoming Adviser to Prime Minister on Finance Shaukat Tareen, will leave for Washington on Thursday morning for attending an annual meeting of Bretton Wood Institutions (BWI), the International Monetary Fund and World Bank, from October 10 to 12, The News has learnt.

Pakistan’s struggling economy is experiencing a nosedive on major macroeconomic indicators, especially the foreign currency reserves, which has resulted in a massive fall of the rupee against the dollar, touching Rs79.60. The annual moot of the IMF/WB is going to take place at a time when Standard & Poor’s downgraded Pakistan’s rating by two notches in one go, which was never done before in the country’s history.

Tareen, who is likely to take oath as Adviser to PM on Finance on Wednesday, will lead the delegation consisting of Finance Secretary Dr Waqar Masood, EAD Secretary Farrukh Qayyum, State Bank Governor Dr Shamshad Akhtar and Debt Office DG Dr Ashfaque Hassan Khan.

Although, Prime Minister Syed Yousuf Raza Gilani has not yet approved a summary allowing members of the delegation to leave for Washington but official sources say that the summary would be approved on Wednesday.

“Yes, the summary has not yet been approved,” a senior official at the Finance Ministry told The News on Tuesday afternoon but added in the same breath that Shaukat Tareen would take oath on Wednesday and the delegation would depart for Washington by Wednesday night or early Thursday morning.

Sources said the delegation would hold crucial meetings with finance ministers of major donor countries on the sidelines of the annual moot of the IMF and WB during the three-day stay in Washington. The moot will take place at a critical juncture for Pakistan when it is making all-out efforts to keep itself at bay from getting a bailout package from the IMF.

“The danger of default will be hovering over the country’s economy if Islamabad remains unable to inject much-needed dollar inflows into the rapidly depleting national kitty,” said an official source.

Top heads of International Financial Institutions (IFIs) and donor countries would be informed about the future economic roadmap of the country as economic managers have recently prepared a macro-economic framework to bring the derailed economy back on track.

Pakistan will apprise them that it will not let fiscal deficit cross the envisaged target of 4.7 per cent of the GDP during the current fiscal year compared to over 7 per cent last year. In this regard, all major subsidies such as on POL and power sector will be done away with. The government would also cut down on development and non-development spending in order to control growing expenditure side.

The donors will also be informed that the government would launch various schemes to generate financing under which more tools will be introduced in National Savings Schemes (NSS), Government Commercial Papers (GCPs) and Pakistan Investment Bonds (PIBs).

The financing to bridge fiscal deficit would also be arranged through mobilization of domestic and external resources.

The government has also taken stringent steps to reduce the imports in the country which are exerting the pressure on balance of payment. The government had slapped 15 to 25 per cent duty on import of non-essential items and increased Letter of Credit margin by 100 per cent.
 
< Prev   Next >
[ Back ]