Re: Khazana Choor And Liar, Ishaq Daar lies about economy presented at GEO
^^ I don’t think you have to economic genius to know whats going on in the country. Just go out on a street and ask people if their economic situation is better today then it was 8 years ago.
Aziz govt overspent Rs558bn, fudged figures: Dar
Macro-economic projections revised downward
By Mehtab Haider
ISLAMABAD: Holding the Shaukat Aziz government responsible for “figure fudging” and creating mess on the economic front, Finance Minister Ishaq Dar said that all findings would be tabled before parliament for action against those who violated their own Fiscal Responsibility Law.
The economic situation is so alarming that the government had to revise downward all macro-economic projections including GDP growth target from 7.2 per cent to six per cent, fiscal deficit target surged from 4.5 per cent of GDP to over six per cent, FBR target from Rs1025 billion to Rs990 billion, inflation going up from six per cent to 10 per cent, current account deficit up from 5.5 per cent to 10 per cent of GDP, possibility of raising basis points on Pakistan’s issued bonds from 200 points to 600 basis points over LIBOR (London Inter-Bank Offering Rates) by June 30, 2008.
“The mismanagement of economy has resulted in overspending of Rs558 billion and if the government does not take corrective measures then fiscal deficit will touch 9.5 per cent of GDP by June 2008.”
Ishaq Dar presented these startling and disturbing figures about Pakistan’s economy at a press conference along with Information Minister Sherry Rehman here at the PM Secretariat on Wednesday.
He said that these figures would be presented before parliament, the National Assembly Standing Committee on Finance and the Public Accounts Committee for scrutiny of the facts where Shaukat Aziz and his entire team would be asked to explain this sad state of economy.
He said the caretaker government was also responsible for this mess, as they too took no step to control the situation. Instead, they hiked POL prices and power tariff. He also said that over 73.6 per cent population lived below poverty line, according to two dollar a day definition.
Flanked by Special Finance Secretary Dr Ashfaque Hassan Khan, Secretary Finance Dr Waqar Masood and Chairman FBR Abdullah Yousaf, Ishaq Dar said the government would take tough measures to put the economy back on the right track by rationalising the POL prices, focusing on agriculture and manufacturing sectors and tackling energy crisis through conservation for achieving the desired results.
To improve the economic situation, he said, the government would generate $2.5 billion from foreign inflows, reducing expenditure and by mobilising revenue generation from various avenues to revive the derailed economy.
The public debt, he said, touched new height during the last eight years. It rose to Rs 2946 billion from 1947 to 1999, but climbed to Rs5695 billion by June 2008, showing an increase of Rs2749 billion in the last eight years. “Those who claim to have broken the begging bowl have actually enlarged it,” Ishaq Dar observed.
He said external debt has climbed to $42.5 billion from $37.5 billion in 1999 despite receiving significant inflows. He also said the credit rating of the country could also be downgraded.He said the growth in money supply (M2) is fuelling inflationary pressure as it is projected to grow by 19% till June 2008, resulting into CPI inflation exceeding 10% and food inflation 14%.
The money in circulation was Rs643 billion in 1999, which grew to Rs4065 billion by June 2007. It is projected that the money circulation will reach Rs4837 billion by June 2008. Answering a question about the strategy to reduce the fiscal deficit to 6per cent of GDP, he said that the decision on imposition of new taxes could be taken in the budget on the basis of progressive taxation. However, he said the POL prices could be rationalized and the cabinet would take a decision in this regard.
To another question about the officials who were part of the team of the previous regime and are still sitting with him, he said that the standing committees of the National Assembly, the Senate and the Public Accounts Committee have the right to summon any one to question about these figures.
He also outlined the coalition government’s strategy to revive the economy, saying that the government would focus on hitherto neglected agriculture and manufacturing sectors in the months ahead.