Economy Out Of Crisis, Trade Deficit Declining: Hammad Azhar

Minister of State for Finance, Revenue and Economic Affairs Hammad Azhar informed the Senate on Monday that the economy was out of crisis, trade deficit was declining and other financial indicators were improving.

ISLAMABAD, (UrduPoint / Pakistan Point News - 12th Nov, 2018 ) :Minister of State for Finance, Revenue and Economic Affairs Hammad Azhar informed the Senate on Monday that the economy was out of crisis, trade deficit was declining and other financial indicators were improving.

Speaking at the floor of the House, he said, if the trend continues, we will cut the current account deficit from $18 billion to $12 billion. We have averted the immediate financial crisis.

Talking about loans of the government, he said the total public debt increased to Rs 28000 billion and the external loans reached $ 94 billion during the tenure of the previous government, forcing the PTI government to take remedial measures.

Hammad said Pakistan's trade deficit reduced as imports came down because of the imposition of regulatory duty. There was a substantial increase in the foreign exchange reserves and remittances, he added.

The State Minister informed that the caretaker government and then the PTI government took loans of $ 400 million from different financial institutions. He said Saudi Arabia had given a loan package of $ three billion for a year to Pakistan which would be renewed for next two years. He said $ three billion from Saudi Arabia would be placed in the account of State Bank to support the country's foreign exchange reserves.

The minister said modalities were being finalized for financial support from China and the Parliament would be informed at the conclusion of a deal. He said Federal board of Revenue (FBR) had issued notices to 294 individuals in connection with foreign companies revealed in Panama papers. FBR was securing further data to locate other persons.

He told the house that the government had collected data of 96,000 Pakistanis having accounts abroad and it would pursue the matter further. FBR had appointed six commissionerates to probe the accounts, adding FBR had already recovered Rs 4-5 billion from people named in Panama Papers.

He said previous government indulged in gimmickry, fudged figures and showed less loans by changing definitions of economic terms.

"The previous governments only knew how to take loans, however we will ensure that the country comes out of the balance of payments crisis and the economic crisis. We will change the definitions used by the last government to improve economic numbers. The government will put the true picture of the economy before the people", he expressed.

Responding to criticism of the Opposition, he said when government talked about corruption in visits abroad, it showed its resolve to tackle the problem.

He said Brent crude price was at around $70 per barrel and the government increased prices accordingly. "We do not believe in deficit finance growth and giving away national institutions as collateral," he said adding that the previous government failed to undertake necessary reforms. "We have decided to separate policy wing from the collection wing of Federal Board of Revenue (FBR)."The minister said an economic reform package would be put before the cabinet. The exporters would be facilitated and given gas and electricity at rates that make them competitive in the region. He expressed his disappointment at the use of language by the Opposition Senators and urged them to focus on issues of substance.