Says \u2018fundamentals in our favour\u2019 but \u2018nobody can predict the market\u2019
\n Islamabad
\nFinance Minister Miftah Ismail on Sunday said that the country\u2019s currency, which has dropped to Rs250 against the US dollar in the open market, will improve in the coming two weeks.
\nPegging hope on the government\u2019s efforts to reduce imports while addressing a press conference in Islamabad, the minister said that \u201cwith the daily rise in incoming dollars and a decline in outgoing units, there will be a surplus\u201d of US dollars in the country.
\nThe minister informed journalists that Pakistan had managed to reduce imports by $2.7 billion between June and July and with the Economic Coordination Committee (ECC) approval secured, the ban on imports may soon be lifted after Prime Minister Shehbaz Sharif and his cabinet\u2019s approval. If the ban is lifted, \u201cmost items\u201d will be affected, barring \u201cvehicles, mobile phones and home appliances\u201d, said Ismail; adding that \u201cfor some time\u201d the ban on the latter categories would continue.
\nResponding to a question, Ismail admitted that \u201cafter the August 17 [Punjab by-] polls, the dollar has gone out of control and appreciated\u201d, but added that he \u201ctruly believed\u201d in the \u201ctrue value of the rupee\u201d being \u201cfar greater than this\u201d.
\nThe rupee came under pressure because the government had lost \u201ca billion and another billion\u201d in payments last month, he explained before adding that the government\u2019s plan of action was to \u201cincrease exports\u201d in the coming months. \u201cBut the big issue of impending default has been resolved,\u201d he said.
\n\u201cWe plan to give Pakistan a healthy economy. We are determined to minimise the current account deficit and turn it into surplus within a year or so,\u201d he added.
\nResponding to another question during the conference, Ismail said that: \u201cMy number one priority has never been to control inflation or to bring growth. My priority has only been to save Pakistan from default,\u201d \u2013 a goal the minister claimed to have achieved earlier this week too, as an increase in the inflow of foreign currency is expected in the next quarter.
\nThe finance minister remained cautious in his optimism, however. Speaking candidly, he admitted \u201cnobody can predict the market\u201d and that while he believed the \u201cfundamentals are in our favour, but speculations and sentiments also play a role\u201d.
\n\u2018You are responsible, Khan Sahab\u2019
\nLambasting the previous Pakistan Tehreek-e-Insaf (PTI) government, Ismail said that \u201cin four years, the PTI could not reach the tax-GDP ratio of the PML-N government. We had left it at 11.1 per cent and the PTI took it to nine per cent.\u201d
\nThe minister also said that the PTI government had sold petrol and oil at a loss all the while violating the agreement it had itself negotiated with the International Monetary Fund (IMF).
\n\u201cAfterwards, he [Imran] said what harm can a little money laundering do? What harm can breaking the [IMF] agreement do? What difference does it make if the country defaults a little? It makes a difference Khan sahab.\u201d
\nContinuing his criticism, the minister also said that \u201cImran Khan used to say he would increase tax [collection] but he reduced it every year\u201d and that the PTI government\u2019s policy of imposing indirect taxes had put pressure on the incumbent government to impose direct taxes in a \u201cdifficult budget\u201d.
\nMiftah Ismail also placed the onus of increases in circular debt on Imran\u2019s government, adding that it had more than doubled from $1.1 billion to $2.5 billion.
\n\u201cThey did not work on any area. They just kept appearing on the media, on Twitter and making false statements,\u201d retorted the minister. \u201cNow they ask who is responsible? You are responsible Khan sahib,\u201d he claimed.<\/p>\n","protected":false},"excerpt":{"rendered":"
Says \u2018fundamentals in our favour\u2019 but \u2018nobody can predict the market\u2019 Islamabad Finance Minister Miftah Ismail on Sunday said that the country\u2019s currency, which has dropped to Rs250 against the US dollar in the open market, will improve in the coming two weeks. Pegging hope on the government\u2019s efforts to reduce imports while addressing a […]<\/p>\n","protected":false},"author":2,"featured_media":274779,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":{"0":"post-274820","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-top-news"},"yoast_head":"\n