Islamabad:
The Minister of Finance, Muhammad Aurengzeb, said on Saturday that the government was not too worried about additional 29% rates imposed on their exports, but said that a high -level delegation would soon visit Washington for commercial negotiations.
“This is not something we are too worried, but we want to address this problem,” said finance minister while aiming at a press conference on recent economic developments.
The minister did not give any detail about the possible adverse impact in the short term on the estimated annual exports of $ 5.5 billion of Pakistan to the United States.
The statement occurred immediately after the decision of Prime Minister Shehbaz Sharif to establish a policy management committee and a technical work group to finish the political response to the unilateral action of the United States and take advantage of a nation of “early engine”.
The United States is a very important strategic partner in all areas and the largest commercial partner, said the minister.
He said that in the next few days the government will end the recommendations and a high -level delegation will be sent to the US for commercial negotiations. The government is constructively committed and we want our point of view to cross the table, he added.
The Government was finishing its recommendations in the line of reduction of the US goods and offering more opportunities to US sellers to minimize the current commercial surplus of $ 3 billion.
President Donald Trump slapped unilateral tariffs against 60 nations that have commercial surpluses, standing Pakistan in 33rd position with only one surplus of $ 3 billion due to higher textile exports.
China debt
While answering a question, the Minister of Finance said that the discussions with China currently focused on the refinancing of the commercial loan of $ 1 billion that Pakistan paid last month and the issuance of Panda’s bond.
Islamabad returned the Chinese commercial debt of $ 1 billion by assuming Beijing would present it. The discussions of commercial loans are at a very advanced stage and the agreement will be ended soon, he added.
The minister had been asked to comment if there was any progress in Pakistan’s requests for a new loan of $ 1.3 billion and the reprogramming of the guaranteed debt of $ 3.4 billion that was maturing during the IMF program period. Both problems are sometimes pending and there has been no tangible progress.
But the finance minister said the discussions have remained productive. He also said that at the end of June, the country’s foreign exchange reserves will reach $ 13 billion, which are currently at a minimum of six months of $ 10.7 billion after paying the Chinese debt.
IMF visits
The finance minister said that Pakistan and the IMF have active commitments and there will be some missions that will visit for the discussions.
Pakistan has sought the support of the IMF on the improvement of governance and the Mission of Diagnosis of Corruption and Governance of the IMF is here, said finance minister.
The Express PAkGazette has reported that the IMF sent a second diagnosis mission of corruption and governance to Pakistan to celebrate in -depth commitments with more than 30 departments and institutions, including registrars of the Pakistan Supreme Court (SCP) and the Court of Responsibility.
The IMF mission will meet with the SCP registrar to discuss the judicial efficiency and responsibility of the judges. A separate meeting has also been scheduled with the Registrar of the Islamabad Court of Responsibility to discuss the operations of these special courts, they added.
For one question, the Minister of Finance said that another IMF mission will visit Pakistan in May for discussions about the next budget.
The Minister of Finance also mentioned that for the first time, the provinces had taken measures to meet the objectives, and expressed the hope that the IMF Executive Board will soon approve the second section of $ 1 billion.
Opening economy
The Minister of Finance said that the Pakistan industries will now have to compete and that the economy will open. His comments reached the light of the understanding of Pakistan-IMF about the reduction of average weighted tariffs by 43% to 6% for a period of five years.
We cannot protect our industries without having a Sun-Set clause and each industry has to export, said finance minister. He said there should be exports in each sector, expressing his satisfaction that the automotive sector has begun exports in the last two months.
The minister said there is an increase in foreign exchange reserves in the back of very strong remittances and expressed confidence that remittances will touch the $ 36 million record in this fiscal year.
“Exports are also firm with a growth of 7%,” he added.
The minister said that FBR income collection will increase by 32.5% this year, below the budget objective of 40% growth. But the minister said that the general objective of increasing the relationship imposed to GDP to 10.6% for the end of this fiscal year will be achieved. With a growth of 32.5%, the objective of the FBR has been reviewed down at RS12.3 billion, a reduction of RS640 billion by the IMF.
The finance minister stated that there has been a significant reduction in interest rates and, in his opinion, there is room for greater reduction.
He added that there are no difficulties in opening credit letters (LCS) or transferring profits from companies abroad. In the domestic front, inflation has decreased significantly. He said that the reduction of the inflation rate should be transmitted to the public.
The minister reported that purchases were made worth RS870 billion during Eidul Fitr, compared to RS720 billion in the last year, which shows an increase of 21%. This shows that people who buy power have increased, he added.
