Summary Finance minister issue of rupee dollar parity was not discussed during talks with IMF.
ISLAMABAD (Online) - Federal Minister for Finance Ishaq Dar has said that the issue of rupee dollar parity was not discussed during talks between International Monetary Fund and Pakistan.
Ishaq Dar made these remarks during launching ceremony of sixth annual report of Institute of Public Policy on Monday.
The minister criticized the much discussed news of rupee depreciation to the extent of Rs.114.00 as a result of some implicit understanding between Government of Pakistan and International Monetary Fund.
He said that that there is neither any explicit nor implicit understanding with the IMF on the devaluation of rupee.
Pakistan had to enter into the programme with IMF and left with hardly a choice we had to approach IMF to beef up our dwindling Foreign Exchange Reserves.
Not only has this programme stabilized our external account, but it has also re-established the confidence of other international donor agencies and international banks for development partnerships with Pakistan as an IMF member state, Dar added.
He said that International Financial Institutions and Banks, which were hitherto hesitant to do business with Pakistan, have responded positively and are now approaching the Government of Pakistan for doing business which had halted for the last 3 years.
Ishaq Dar said that the World Bank and Asian Development Bank have agreed to recommence their support to Pakistan after a lapse of three years.
The Finance minister said that government has formulated a Medium Term Budgetary Framework for 2013-16 to put the economy on a trajectory of sustained growth. Under this framework, GDP growth will gradually increased to around 7 percent, Investment/GDP will be increased to 20 percent and fiscal deficit to be brought down to 4 percent of GDP.
Under this framework Pakistan’s foreign exchange reserves be increased to around $20 billion, and Public Debt be reduced to 57.5 percent of the GDP, Ishaq Dar informed.
Answering to a question, Finance minister said that expatriates sent 1.4 billion dollars during the month of July 2013, he said that if resources before 9/11 were utilized in positive direction then situation might have been changed today.
Ishaq Dar further appraised that notice have been served to 10900 those who have tax liabilities and their process is under progress.
To another question about privatization of Pakistan Steal Mills and other entities, the minister informed that government is trying to find strategic partners rather of privatization.
Through a package of things this process of things will be carried out Dar added.
