Twirp : Terrorist Wahabi Islamic Republic Pakistan 3

[Naresh]

[center] <!--emo&:clapping--><img src='style_emoticons/<#EMO_DIR#>/clap.gif' border='0' style='vertical-align:middle' alt='clap.gif' /><!--endemo--><b><span style='font-size:14pt;line-height:100%'>TOO RIGHT!</span></b> <!--emo&:clapping--><img src='style_emoticons/<#EMO_DIR#>/clap.gif' border='0' style='vertical-align:middle' alt='clap.gif' /><!--endemo-->[/center]

<!--emo&:flush--><img src='style_emoticons/<#EMO_DIR#>/Flush.gif' border='0' style='vertical-align:middle' alt='Flush.gif' /><!--endemo--> <b>Borrowing only option left : Tareen</b> <!--emo&:flush--><img src='style_emoticons/<#EMO_DIR#>/Flush.gif' border='0' style='vertical-align:middle' alt='Flush.gif' /><!--endemo-->

<i>* Finance adviser says impossible for Pakistan’s economy to survive on its own in present situation
* Hints at bringing untaxed entities within tax network</i>

KARACHI : Pakistan is left with no option but to borrow from international financial institutions to bridge the balance of payment deficit and to build up its forex reserves, Prime Minister’s Adviser on Finance and Economic Affairs Shaukat Tareen said on Saturday.

“There is no way out from the current crisis except to go for A, B & C options envisaging borrowing from multilateral lenders and friendly countries,” Tareen told businessmen at a meeting of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI).

Survival: He said it was impossible for Pakistan’s economy to survive on its own in the present situation. However, he ruled out the possibility of the country defaulting on its debt payments. “We will hear good news within 30 days from our friends regarding financial assistance,” he said.

Tareen said it was imperative to think about the causes that had led the country into such crisis. “We have heard of breaking the begging bowl in the past. But again we are standing where we started from,” he said.

Criticising the economic policies of the past regime, Tareen said that the time required ‘out of the box’ thinking for mitigating the country’s economic woes and it could only be possible through a public-private partnership.

He said the stabilisation of macro-economic indicators was the government’s top priority, adding that the biggest challenge presently was to bring down the fiscal deficit to 4.3 percent from the current over seven percent.

“This can only be achieved by cutting down the expenditure and enhancing the revenue generation,” he said, adding that the government was seriously working on the lines.

He advocated a realistic foreign exchange regime because the unrealistic exchange rate in the past had worsened the matters instead of improving them.

Taxation : The adviser also stressed the need for expanding the tax base and proposed bringing the untaxed sector within the network to raise the tax-to-GDP ratio.

The ratio is aimed at 15 percent in the next five years from 10.5 percent presently, he said.

<b>He disclosed that the poverty level in Pakistan had risen in recent months, with the two lowest income groups engulfed in abject poverty.</b>

Responding to several queries of the businessmen, the adviser informed them about the government’s economic vision of reforming various economic sectors, and giving top priority to agriculture and manufacturing to create employment opportunities in the country.

Regarding law and order, Tareen said a special security cell would be established in the Finance Ministry in liaison with the Interior Ministry to deal with security issues in relation to business and investment.

Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->