Standing Committee given detailed briefing on IMF Agreement with Pakistan
Islamabad: The Standing Committee on Finance and Revenue met under the Chairmanship of Mr. Qaiser Ahmed Sheikh, MNA today in the Parliament House, Islamabad.
The Committee decided to pend discussion on The Modaraba Companies and Modaraba (Floatation and Control) (Amendment) Bill, 2020 for its next meeting. The Committee also expressed its annoyance on absence of Secretary Finance Division and Governor State Bank from the meeting. They Committee decided that it will not take up any government agenda in future in case relevant senior officers were absent without prior permission of the Committee.
The Minister of State for Finance and Revenue gave a Comprehensive briefing on IMF Agreement with Government of Pakistan for extended fund facility. She apprised the Committee 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 of Pakistan. She agreed that the economy cannot be uplifted by quick fixes. She stressed for structural changes and long term policies for making the country’s economy vibrant and growth oriented. The Minister of State informed that circular debt management, income tax reforms and divesting shares of state own organisations were some of the major points.
The Minister of State also informed that the recent unprecedented floods and devastation caused in all provinces had given a major blow to the financial resources of the country. She said that funds were diverted to provision of relief/rescue to the effectees. She said that their rehabilitation and reconstruction of infrastructure was an uphill task. She said that financial estimates for PSDP for the current financial years will likely be redrawn keeping in view the reconstruction of the devastated infrastructure.
While discussing the relief and rehabilitation efforts of the National Disaster Management Authority (NDMA), the directed to ensure that the survey of the devastation caused by floods is completed at the earliest so that the Government could announce financial assistance package for the flood effectees rehabilitation. The Representative of the NDMA apprised the Committee about the extent of devastation caused by torrential rains and floods, relief operations and through NDMA, PDMAs and social sector organisations etc. The Minister of State for Finance informed that the quantum of financial assistance through BISP had also been increased.
The Committee while discussing the Effects of high inflation during current fiscal year and rising dollar rate, the Committee directed the State Bank to keep a vigilant eye on their rising trend. The Committee was of the view that State Bank should exercise its authority and control the problems. The Chairman Standing Committee said that increase in interest rate was not a solution to control inflation besides inflow of dollars should be encouraged through exports. The Committee was apprised by the Deputy Governor State Bank that inflation was a huge problem and in order to address it, it’s root causes had to be addressed. He said that global increase in prices of commodities and natural calamities had effected supply chain. He also apprised about the increase in interest rate, restriction on import of luxury items and facilitation to the exporters/importers. Apprising about the increase in rate of dollar, he said that the SBP does not fix the price of dollar and it is based on market. He said that state Bank had taken various administrative measures to check the price of dollar in the open market. He also informed that there was a significant difference between outflow and inflow of dollars.
The Committee also 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 above bills have already been made part of the Finance Act. The Committee also pended consideration of The Eradication of Riba Bill, 2019″ (moved by Moulana Abdul Akbar Chitrali, MNA) due to absence of the mover.
The Committee meeting was attended by Minister of State for Finance, MNAs Chaudhary Khalid Javed, Ch. Muhammad Barjees Tahir, Mr. Ali Pervaiz, Makhdoom Syed Sami Ul Hassan Gillani, Syed Hussain Tariq, Engr. Sabir Hussain Kaim Khani, Mr. Salahuddin Ayubi and Mr. Ramesh Kumar Vankwani and Senior officers from Finance Division, Revenue Division, State Bank and other concerned departments.
