An old photo of Salim Mandviwala PHOTO: MOHAMMAD AZEEM/EXPRESS
The federal minister further remarked that Pakistan might have to ask the International Monetary Fund (IMF) for a fresh loan in duo course.
The minister's assessment came days after the Pakistan director of the Asian Development Bank, Warner Leipach told Reuters in an interview that the country urgently required US$9billion in IMF lent funding in order to avoid a balance of payment crisis.
Addressing a media briefing in Islamabad, Mandviwala remarked that he had opposed a cabinet proposal of laying down a new network of agricultural tube wells as this would result in the government spending an extra Rs15billion in agricultural subsidies.
He further added that as the floating of the licenses and contracts for importing Liquefied Natural Gas (LNG) was a multi-billion dollar process, he had divested his authority in the federal cabinet to make a decision in this regard.
COMMENTS (13)
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Billions of dollars were spent on producing nuclear arsenal and its delivery system. Time has come for Pakistanis to eat grass as predicted by late Bhutto.
The present FM has further ruined the economy. All he is doing is economic management of politics.Does he realise how FBR has destroyed the economy due to frequent changes in law in past three months?. FBR has become Federal Board of AMNESTY-----that is all it does grant amnesties
If you think the gas pipeline deal was signed to put pressure on IMF to give Pakistan loan then you must be mistaken. IMF is not a fool.
It is very clear once pti comes to power we will not need any loans from non muslim countries.
The state machinery and the country as a whole as collapsed. With our Govt and establishment in no mood to control strategic assets that they have created themselves for sinister use, the condition will only go worse in coming years. Even if PTI or PML comes to power, there will hardly be any change on the health of the economy. I wonder whether IMF too will be stupid enough to give us loans once again, when we are in blatant violation of all promises we made to anyone.
Don't worry people Bibi zinda hai!!!!
As all of you know economy has a business cycle consisting of boom Recession slump and economic growth. in theory it works on basis of economic objectives and policies (in most of the countries) but here in pakistan it is forced by political pressures.Right now our economy is booming because of high government expenditure which is intentionally done to increase vote bank.from my point of view this soon to be deficit is only caused by unexpected government expenditure.
So these geniuses assume that Pakistan won't make any exports and no foreign remittances would come in? How come they make people responsible for offices which they have no idea about?
For last 4-5 years, the foreign remittances are filling the gap between current account deficit. the only times, Pak Foreign reserve declined were the time when we paid back IMF loan installment. Why these idiots do not want Pakistani economy to stand on her feet? Another loan would put in debt trap for many more years, considering that 38%+ of total budget goes to debt servicing.
PML(N) will fix the economy. Its matter of few months now.
IMF and World bank are Pakistan's biggest enemy. They should let the country default. The incompetent politicians will be weeded out by the masses, by vote or by force if the economy deteriorates. Please spare us from loans that only lines the pocket of corrupt politicians.
If the forex reserves are only left for three months of imports than whose fault it is?
Is it the fault of the government or people of Pakistan?
This is not the first time that the government has made such a declaration. Even in the previous government, a similar statement was made when Shaukat Aziz was the Finance Minister of Pakistan.
Why dind't government talk straight in plain words that whenever government want's to borrow money from IMF, it gives such a statement and after taking loan from IMF or the World Bank, government of Pakistan had never gave any account to people of Pakistan as what government had spent the money?
Pakistan didn't honor it's commitments to reform it finances/taxes when it got it's last IMF loans and unless the American's pressure the IMF it's unlikely they are going to bail Pakistan out. It's time for Pakistan to plan it's financial future without loans from the outside world - time for increased taxes and reduced spending.
Pakistan should start taxing the top 10% of its population instead of just a fraction of a percent; and find ways to actually get people to pay. It's really irritating to the international community when it constantly has to bail out a country which takes no responsibility for its own mess.