Finance Minister Asad Umar Thursday said the country is not solely relying on the International Monetary Fund (IMF) for economic relief as the government has also made certain alternative arrangements, a private TV channel reported.
Speaking to journalists here, the minister said that important decisions are being made for financial progress and growth of the country. He said the gap in the payments and foreign reserves has been covered up.
To a question, the minister said the IMF has not placed any ‘non-financial conditions’ for the bailout package. “It is just an option to revive the economy. Negotiations with IMF are in progress and as soon as a good deal is reached, a contract will be finalised,” he said. The minister said the pressure to rush a deal with the international lender had eased with the recent combination of bilateral financial support from historical allies and a host of economic measures taken by the government in its first hundred days in power. “The recent support has resulted in a current account deficit of $6-7 billion less than the previous financial year,” he claimed. “Funding from friendly countries would help shore up the economy over the remainder of the current financial year,” he added.
To a question, the minister said raise in power and gas tariff is applicable to the affluent and not the underprivileged. He said in the supplementary finance bill, important recommendations have been made to promote investments and exports. He asserted that the trade deficit had reduced due to rise in foreign remittances and exports. He ruled out any threat of default and added that a record 65 per cent increase was observed in loans to the private sector from July to December 2018.
Published in Daily Times, January 11th 2019.
