ISLAMABAD: Federal Minister for Finance and Revenue, Miftah Ismail said that the government would make all efforts to restore the Extended Fund Facility (EFF) programme with International Monetary Fund (IMF).
Speaking at ‘Meet the Press’ organized by National Press Club, the finance minister, who was accompanied by Federal Minister Information and Broadcasting, Marriyuam Aurangzeb, said that government would do whatever was necessary to restore the programme.
He said the government could reduce public sector development spending with other necessary budgetary discipline arrangements. “We will restore the programme. If government had to tighten its belt, it will do so,” he said adding that no extra burden would be put on people.
He said the government would provide a people-friendly and development-friendly budget despite all odds created by the PTI government. He expressed hope that value of rupee would not slide further while the markets would also perform well.
He said the PML-N had left growth rate at 6.1 percent which was reduced to 1.9 percent in first year of PTI government, negative one percent the following year and now this year the projection is 4 percent.
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Likewise, he added the Consumer Price Index (CPI) based inflation has went up from 3.9 to 12.7 whereas the Sensitive Price Indicator has climbed up to 17.3 percent adding that the rural inflation has witnessed more hike than urban which is unusual.
He said PML-N left 2.3 percent food inflation which has gone up to 10 percent in the year and 14 percent in March Similarly, the budget deficit during the 5 years of PML(N) tenure was recorded at Rs1600 billion average, however during the current year it has been recorded Rs5600 billion.
Miftah said the tax collection has also reduced from 11.1 percent of GDP to 9.1 percent whereas the debt which was Rs24,952.9 billion in PML-N era has now risen to Rs42,735 billion till December 2021. He said the PTI has taken more than Rs20,000 billion debt during it tenure.
He said when PML-N utilized debt to build energy plants, road infrastructure, dams and education promotion, however no such utilization was witnessed in PTI government.
He said that rupee also devalued by Rs68 in PTI regime whereas PTI government took around $27 billion external debt, an average of $9 billion per year, adding that the average of taking debt was just $1 billion in PML(N) government.
He said that exports increased only in value, not in quantity adding that that imports too increased and are expected to reach historic high at $75 billion this year. So against the exports of $30 billion the trade ratio would be 1:2.5.
He said the current account deficit was also at $20 billion whereas the reserves have gone down to $10.8 billion He said other than the power circular debt, the PTI regime has accumulated gas circular debt to Rs1.5 trillion. He said the government would constitute a commission to investigate urea smuggling.
