- Newly-appointed Finance Minister Shaukat Tarin says the demand to extend the electrical energy tariff by IMF is unjustified.
- Finance minister says improve in tariff is resulting in an increase in inflation in Pakistan.
- Tarin says if present govt is just not in a position to take GDP development to five%, then the nation can be at God’s mercy for subsequent “four years”.
Newly-appointed Finance Minister Shaukat Tarin on Monday mentioned that the Worldwide Financial Fund (IMF) dedicated grave “injustice” in opposition to Pakistan when it comes to the Prolonged Fund Facility provided to the nation.
Tarin remarks got here throughout a gathering of the Nationwide Meeting’s Standing Committee on Finance, Income, and Financial Affairs. The assembly was chaired by the committee chairman, Faiz Ullah Kamoka.
“IMF did injustice to Pakistan, the demand to increase the electricity tariff is unjustified,” mentioned the minister, including that because of the transfer, the economic system has stopped transferring ahead, whereas corruption is on the rise.
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The minister instructed the lawmakers that if the present authorities is just not in a position to take the GDP development to five%, then the nation can be at “God’s mercy for the next four years”. He assured the lawmakers that he is trying to explain the situation to the IMF.
“The increase in tariff is leading to a rise in inflation. We have told the IMF that we will reduce the circular debt but increasing the tariff is unexplainable,” said the minister.
He also told the lawmakers that even though the revenue has risen in the last two months, the government still has to make tough decisions to revive the economy.
“Instead of introducing taxes, there is a need to increase the tax next. Our country lacks short-term, medium-term and long-term policies,” deplored Tarin. He cited the example of China, Turkey, and India where there are consistent economic policies in place.
The minister said he is of the view that there is a need to improve policies in agriculture, industries, the housing sector, and price control.
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Tarin told the lawmakers that mortgage in the country is at 0.25%, adding that if the housing sector is revived, then 20 other industries will start working.
“The federal government ought to privatise all establishments that it’s unable to run,” Tarin said, adding that there very little amount is spent on education and health.
The minister, while speaking to the media after making an appearance before the committee, said that at this point, the government should see what relief can be obtained from the IMF as inflation is rising and urgent measures are needed to control it.
What did Shaukat Tarin say about Pakistan’s economy before becoming finance minister?
The minister’s criticism of the government policies is not something new, as before taking charge of the ministry, he had slammed the policies pursued by his predecessors.
Shaukat Tarin was sworn in as the county’s new finance minister on April 17, after he replaced federal minister Hammad Azhar, who had just been on the job for less than a month.
But, what was Tarin’s perception of the country’s economic policy before he was appointed?
While speaking in Geo News’ programme “Aaj Shahzeb Khanzada Kay Saath”, he had presented a charge sheet against the government’s economic policy.
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“We do not know the place the economic system is heading […] We must put our home so as,” the newly-appointed finance minister had said back then.
The captain of the ship has to stand firm and be strong or the vessel won’t move ahead, he said.
“We’ve got to vary the NAB (Nationwide Accountability Bureau) guidelines to herald folks from the personal sector,” Tarin had added.
Speaking on another TV show, he had said achieving Pakistan’s current economic goals was a difficult task, but not an impossible one.
“The Pakistani nation is just not afraid of difficulties,” he had said.
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Tarin had said if the Federal Board of Revenue (FBR) does not increase its revenue to 15%, then the country will run out of money to spend.
“The FBR must convey income to twenty% in 5-7 years […] in any other case the nation won’t be able to realize an financial development charge of 7-8%,” he added.