Administrative matters will have to be corrected otherwise the economy will not recover: FM

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Finance Minister (FM) Miftah Ismail has said the administrative matters will have to be rectified otherwise the economy will not recover.
“our priority is to rectify national economy rather than instituting cases against previous government. Some minor changes will be made in the budget in the next 15 days. It is our desire that Rs 2000 is not needed to be given to any one. Historical economic deficit was caused to the country during Imran Khan regime. No Prime Minister (PM) has acquired as much loan as imran Khan obtained loan during his regime ”, he said this while addressing a press conference along with Ayesha Ghous Pasha state minister for finance and Information minister Marriyum Aurangzeb here Saturday.

He went on to say budget was presented in difficult time because “ I have not seen as much tough time as I am seeing today in the past.

He stated that subsidy of 1100 billion rupees was given to electricity consumers besides giving circular debt to the tune of Rs 500 billion. Government is paying Rs 16 per unit. It is in fact people money too.

He pointed out that subsidy of Rs 400 billion was given during the ongoing fiscal under the head of gas. We are generating electricity at the rate of Rs 30 to 35 per unit. But if gas is available at cheaper rate in other countries then we can not provide gas at higher rate.

The fate of gas valuing Rs 200 million dollars is not known where it has gone, he added.
Rectifying the country’ s administrative matters is must otherwise it is difficult to run this country.

He indicated that gas valuing Rs 2.4 billion rupees goes in the air. Pakistan is dignified nuclear power. Therefore, we will have to prop up national economy. By allowing subsidy on oil and petrol in February we breached the agreement.

He underlined that PM Shahbaz Sharif took difficult decisions. If we are required to take more difficult decisions then we will too take more difficult decisions because there is no way left for us other than it.

He observed that country had to suffer historical economic deficit during Imran Khan regime. If situation like Sri Lanka surfaces then people will not forgive us. We are facing budget deficit amounting to Rs 459 billion.

We were ahead Bangladesh in 1990, he remarked. What is the reason that we have reached this level. We want support from people. We are not taking the money to home by raising the price of petroleum products. Expenses are rising only by 3 percent.

We have ended subsidy of power and gas sector and we have tried to use rich people share to extricate the country from difficult situation.

There is problem of edible oil , he said adding Prime Minister has however talked to the president of Indonesia.

We have tried to reduce personal income tax, he claimed. We will integrate people to tax net by fixing income tax and sales tax.

Speeches will be made in Senate and National Assembly in the next 15 days and some small changes will be brought in the budget in coming 15 days.

He observed the country runs with the people money and every thing about budget has been written completely.

We have increased budget from 35 to 40 percent. Palm oil will become costly and we will provide subsidy on it. It does not seem to us that the prices of oil will go down in the international markete.

We will integrate 25000 shop keepers in tax net and we are imposing nominal tax on the shop keepers, he held.

What things have been left we will include them in the budget. We are setting up committee on tax leakages, he indicated.

The military budget is there in writing, he said adding we are not hiding any thing.

When PDL tax is levied then the inflation will rise, he underlined. We have not seen EOBI matter so far, he added. We will see it later.

We have not imposed new tax on FATA, he observed.

The companies which have been kept ready for sale by Privatization commission, this job will be completed. Taking the companies to privatization is determination of Prime Minister.