Recent Floods, Surge In Int'l Prices Caused High Inflation: Ayesha Tells NA Body

Minister of State for Finance and Revenue, Dr Aisha Ghaus Pasha said that the current inflation in the country was linked with multiple factors including higher international prices and recent flood situation

ISLAMABAD, (UrduPoint / Pakistan Point News - 16th Sep, 2022 ) :Minister of State for Finance and Revenue, Dr Aisha Ghaus Pasha said that the current inflation in the country was linked with multiple factors including higher international prices and recent flood situation.

While briefing the National Assembly Standing Committee on Finance and Revenue here on Friday, she said that the recent floods disturbed the supply chain mechanism and the government has imported onion and tomatoes to fulfill the domestic need.

The Committee was met under the chairmanship of Qasier Ahmed Sheikh, Member National Assembly (MNA) to discuss the various issues pertaining to ministry and its attached departments The state minister said that the higher prices of international commodities were interlinked with exchange rate and due to floods, the government has to make more imports to meet the domestic production, which resulted in depreciation of exchange rate. She highlighted that the current situation was very painful but we all have to accept it as the government recently took hard decision to for the betterment of the country.

She said that the country needed structural reform and made long terms polices. The government should revise the policy and there should be no compromise on Sustainable Development Goals (SDGs), she expressed.

The Chairman of the Committee said, as the price of Dollar increases, the financial deficit is likely to increase further.

The state minister stressed the need for making a new strategy after reviewing the flood situation in the country adding that there was no difference in FBR revenue and the revenues also increased due to tax on imported goods. She said that the decision was taken to overcome energy crises to open shops at 10 am and close at sunset but no one agreed.

On a query, Aisha Ghaus said that the final estimate of the damages caused by the flood had not yet been calculated.

Replying to a question, she said that the government had no intention of imposing more taxes and fixing the power sector was most important.

The Committee deferred "The approval of Riba Bill, 2019 due to absence of the mover of the Bill.

While briefing the committee on agreement with International Monetary Fund (IMF), she that that the program was suspended by the IMF due to deviations by the previous government. She apprised that the agreement was thoroughly negotiated keeping in view the national interests.

She said that the government had successfully received $3.9 billion under Extended Fund Facility (EFF) and by June 2023, it would receive the remaining $2.6 billion.

An official of National Disaster Management Authority (NDMA) informed that after completion of survey, the government announced the facts and figures. He said the latest data of 15 September shows that around 1,508 people died and more than 12,000 injured.

He said that 12,418 kilometer road was damaged, 390 bridges, 1,215,398 houses partially and 581,521 houses fully damage.

The Committee unanimously recommended that the next meeting would be held in the presence of nominated officials.

The Committee allowed Finance Division to withdraw The Income Tax (Amendment) Bill, 2021 (Ord. No. II of 2021), The Tax Laws (Amendment) Bill, 2021 (Ord. No. VI of 2021) and The Tax Laws (Third Amendment) Bill, 2021 (Ord. No. XXII of 2021).

The Committee was apprised that the bills had already been made part of the Finance Act.

Among others, the meeting was attended, Chaudhry Khalid Javed, Ali Pervaiz, Muhammad Barjees Tahir, Syed Huissain Tariq, Salahuddin Ayubi, Ramesh Kumar Vanwani, Wajiha Qamar, senior officers from Ministry of Finance and Revenue, SBP, NDMA and Ministry of Law.