$46-billion CPEC: Govt attempts to clear transparency concerns
Finance minister comes down hard on critics raising alarm over growing public debt
Pakistan-China Economic Corridor PHOTO: FILE
ISLAMABAD:
The government on Wednesday moved to address transparency concerns over $46 billion deals under the China-Pakistan Economic Corridor (CPEC), coming down hard on critics who have been raising concerns over growing public debt.
Finance Minister Ishaq Dar chose a government-funded forum on transparency in the public sector to address apprehensions over transparency in various government deals including CPEC and privatisation transactions. He also rejected allegations that the government was influencing the auditor general of Pakistan (AGP) to give a favourable report on Rs480 billion circular debt payments made in June 2013.
Pakistan should be more transparent on $46 billion China deal: SBP
“The government is taking all necessary measures to make sure CPEC remains transparent,” Dar said. He vowed there would not be the slightest compromise on the principles of economy, efficiency and effectiveness at any stage of the project.
The government has not yet made public the framework agreement of CPEC signed between China and Pakistan. Dar supported the proposal to make the framework agreement public.
In recent days, the government upward revised the cost of road construction projects of CPEC in a haste, which deepened transparency concerns.
Dar emphasised that the $46 billion deals would not increase public debt by the same amount, as $34 billion worth projects were in the private sector. He said ‘pseudo-intellectuals’ were misguiding the people over the exact volume of public debt.
Development efforts: ‘Transparency essential for good governance’
“During the two-and-a-half-year tenure of the PML-N government, public debt increased only by Rs3.8 trillion,” the finance minister said. According to data released by the State Bank, total public debt stood at Rs18.5 trillion by end of September.
Dar said the government was aware that the country cannot be permanently run on borrowings. “Only economic sovereignty will make Pakistan a real nuclear power.”
He claimed that economic decisions were made in a transparent manner, adding that the government was streamlining the existing policy making mechanism. He also recognised the need for an independent and autonomous State Bank, although his ministry is fully controlling the operations of the central bank.
Dar also said the government did not discourage the former AGP Akhtar Buland Rana, who spent two years trying to prove that theRs480 billion circular debt payment was mala fide. He said the audit report of the payment has been finalised and is with the Public Accounts Committee (PAC). “The government will accept and implement the verdict of PAC in letter and spirit,” he added.
Potential: CPEC to meet needs of people
The minister highlighted the role of Public Procurement Regulatory Authority (PPRA) in ensuring transparency. He said the government has given full autonomy to PPRA.
However, Dar, in his speech, did not mention negotiations with Qatar for LNG import, one of the most secret deals of the present government. Speaking at the forum, Information Minister Pervaiz Rashid said the PML-N government firmly believed in transparency and good governance.
“The fact that no mega-corruption scandal, unlike the past, had been reported and unearthed either by the vigilant media or the transparency monitoring agencies is proof of commitment of the PML-N government to do things in right direction and in transparent manner,” he told participants.
The minister added that the seminar on transparency itself testified to this fact.
Rashid said the ‘ambience of gloom’ in the country has been replaced by ‘vibrant optimism’ as a result of the PML-N government’s initiatives. “Economy is on an upward curve signifying the commencement of an era of sustained economic growth,” he said, adding that foreign exchange reserves had increased and inflation had been brought down to a ten-year low.
Potential: CPEC to meet needs of people
He added that energy shortages had been overcome to a large extent and the load-shedding had been reduced to a bare minimum.
Meanwhile, Water and Power Secretary Younas Dagha said the ministry is in process of removing flaws and improving efficiency in the power sector.
“There was an increase of around Rs15 billion in circular debt every year when the government took over in 2013,” Dagha said at the forum. “The debt was not only cleared but also curtailed, which is evident from the fact that 100 per cent payment has been made to IPPs in the fiscal year 2014-15,” he added.
The secretary said all details with regard to payments to IPPs have been placed on the official website of the ministry to uphold the principle of fair play. “With the government’s policy of transparency and good governance, Rs12 billion are being saved annually and so far over Rs75 billion have been added to the national exchequer.”
Published in The Express Tribune, December 31st, 2015.
The government on Wednesday moved to address transparency concerns over $46 billion deals under the China-Pakistan Economic Corridor (CPEC), coming down hard on critics who have been raising concerns over growing public debt.
Finance Minister Ishaq Dar chose a government-funded forum on transparency in the public sector to address apprehensions over transparency in various government deals including CPEC and privatisation transactions. He also rejected allegations that the government was influencing the auditor general of Pakistan (AGP) to give a favourable report on Rs480 billion circular debt payments made in June 2013.
Pakistan should be more transparent on $46 billion China deal: SBP
“The government is taking all necessary measures to make sure CPEC remains transparent,” Dar said. He vowed there would not be the slightest compromise on the principles of economy, efficiency and effectiveness at any stage of the project.
The government has not yet made public the framework agreement of CPEC signed between China and Pakistan. Dar supported the proposal to make the framework agreement public.
In recent days, the government upward revised the cost of road construction projects of CPEC in a haste, which deepened transparency concerns.
Dar emphasised that the $46 billion deals would not increase public debt by the same amount, as $34 billion worth projects were in the private sector. He said ‘pseudo-intellectuals’ were misguiding the people over the exact volume of public debt.
Development efforts: ‘Transparency essential for good governance’
“During the two-and-a-half-year tenure of the PML-N government, public debt increased only by Rs3.8 trillion,” the finance minister said. According to data released by the State Bank, total public debt stood at Rs18.5 trillion by end of September.
Dar said the government was aware that the country cannot be permanently run on borrowings. “Only economic sovereignty will make Pakistan a real nuclear power.”
He claimed that economic decisions were made in a transparent manner, adding that the government was streamlining the existing policy making mechanism. He also recognised the need for an independent and autonomous State Bank, although his ministry is fully controlling the operations of the central bank.
Dar also said the government did not discourage the former AGP Akhtar Buland Rana, who spent two years trying to prove that theRs480 billion circular debt payment was mala fide. He said the audit report of the payment has been finalised and is with the Public Accounts Committee (PAC). “The government will accept and implement the verdict of PAC in letter and spirit,” he added.
Potential: CPEC to meet needs of people
The minister highlighted the role of Public Procurement Regulatory Authority (PPRA) in ensuring transparency. He said the government has given full autonomy to PPRA.
However, Dar, in his speech, did not mention negotiations with Qatar for LNG import, one of the most secret deals of the present government. Speaking at the forum, Information Minister Pervaiz Rashid said the PML-N government firmly believed in transparency and good governance.
“The fact that no mega-corruption scandal, unlike the past, had been reported and unearthed either by the vigilant media or the transparency monitoring agencies is proof of commitment of the PML-N government to do things in right direction and in transparent manner,” he told participants.
The minister added that the seminar on transparency itself testified to this fact.
Rashid said the ‘ambience of gloom’ in the country has been replaced by ‘vibrant optimism’ as a result of the PML-N government’s initiatives. “Economy is on an upward curve signifying the commencement of an era of sustained economic growth,” he said, adding that foreign exchange reserves had increased and inflation had been brought down to a ten-year low.
Potential: CPEC to meet needs of people
He added that energy shortages had been overcome to a large extent and the load-shedding had been reduced to a bare minimum.
Meanwhile, Water and Power Secretary Younas Dagha said the ministry is in process of removing flaws and improving efficiency in the power sector.
“There was an increase of around Rs15 billion in circular debt every year when the government took over in 2013,” Dagha said at the forum. “The debt was not only cleared but also curtailed, which is evident from the fact that 100 per cent payment has been made to IPPs in the fiscal year 2014-15,” he added.
The secretary said all details with regard to payments to IPPs have been placed on the official website of the ministry to uphold the principle of fair play. “With the government’s policy of transparency and good governance, Rs12 billion are being saved annually and so far over Rs75 billion have been added to the national exchequer.”
Published in The Express Tribune, December 31st, 2015.