The Senate has been informed that the way for the Pakistan Tehreek-e-Insaf (PTI) government to implement its reforms agenda is clear now that the short- and medium-term balance of payments crisis had been averted.
Winding up discussion on the terms and conditions of the foreign loans obtained or being obtained, Minister of State for Finance Hammad Azhar said on Monday that there was an immediate balance of payments crisis when the present government took over.
He, however, said that Pakistan is out of the woods now, with a support package from Saudi Arabia and the commitment from China to bridge the gap.
Azhar added that modalities for the support from China are being worked out.
The minister also disclosed that data of 96,000 offshore account holders from Pakistan had been obtained from 27 countries, with data from another 13 countries in the process of being retrieved.
About the Panama Papers, he said that while 444 Pakistani individuals holding bank accounts abroad had been identified, proceedings against 242 of them would not be instituted due to “time bar”.
Azhar added that action against another 150 could not be taken due to incomplete particulars.
He disclosed that the government is in the process of improving the definition of economic indicators to put a stop to gimmicks in economy and accountancy to an end.
Rejecting criticism of Prime Minister Imran Khan speaking about corruption in Pakistan during a visit to China, the minister said that credibility has been eroded by the fudging of figures and not by the talk of corruption and accountability.
“It only shows the resolve of the government to act against the corrupt,” Azhar remarked.
Referring to the government’s plan to provide gas and electricity to textile and some other industrial sectors, he pointed out that Pakistani businesses are in competition with counterparts in China, India, and Bangladesh.
“They will be offered concession on a par with the regional competitors,” he said.
Azhar told the Senate that the exports had registered an increase of 4.6% in recent days, while imports had gone down.
“We do not believe in deficit finance growth. It is not appropriate to mortgage your strategic assets. Economy can only be run on the principles of economy,” he said.
Meanwhile, Petroleum Minister Ghulam Sarwar Khan has criticised the previous Pakistan Muslim League – Nawaz (PML-N) government for signing a long-term contract of 15 years for import of LNG (liquefied natural gas), with a dubious clause under which the agreement would remain classified for three years even after its expiration.
He said in a speech that the government is now focused on exploration, and that open bids would be invited for 10 blocks shortly, adding that a new petroleum policy would be unveiled next year.
The minister said that the boards of all companies under the petroleum ministry would have representation from all provinces.
Meanwhile, former Senate opposition leader Sherry Rehman has submitted two labour-related bills to amend the Board of Investment Ordinance 2001 and the Foreign Private Investment (Promotion and Protection) Act 1976.
The bills aim to provide legislative support for the local workforce.
Speaking on the floor of the house, Rehman said: “We have the 10th largest labour force with nearly 1.5bn people entering it annually, yet there seems to be no concrete plan in place for them.
“With the projected surge of FDI (foreign direct investment) in Pakistan, it is mandatory to enact these laws. The government should have done this much sooner.
The first bill is an amendment to the Foreign Private Investment (Promotion and Protection) Act 1976, which aims to set a quota seeking to guarantee that foreign investors hire at least 60% of local labour for their projects from the particular province of its operations.
The second bill, Rehman explained, is an amendment to the Board of Investment Ordinance 2001, which called for the mapping of labour expertise, capacity, training, and experience in one database categorised by province.
GULF TIMES
