Economic challenge: Govt to raise foreign reserves in 2014

Expects to gather $10.1 billion through remittances, auction of 3G licences and outstanding CSF payments.

ISLAMABAD:

With the economy in dire straits, government on Monday informed the lower house of Parliament that it plans to boost foreign exchange reserves during 2014.

In a written reply outlining the recovery plan, Finance Minister Ishaq Dar informed the National Assembly that the government will raise $10.1 billion from different inflows to jack up the country’s depleted foreign reserves.

According to the breakup, World Bank (WB) and Asian Development Bank (ADB) are expected to contribute $1.4 billon, Islamic Development Bank (IDB) $1.2 billion, Global Euro Bonds (ICF) $2 billion, $1 billion in remittance based bond floatation, another $1 billion in share disinvestment through the stock market, while the auction of 3G licenses is expected to fetch $1.2 billion and an estimated $1.5 billion in outstanding Coalition Support Fund (CSF).



The minister also informed the house that under the Extend Fund Facility (EFF) agreement with International Monetary Fund (IMF), the government has also received first and second installments of US$ 544 and $ 553 million.

According to the statement, the country received loans worth US$ 232.85 million from IDB and Saudi Arabia during July 1 to December 31, 2013.

Similarly, the Executive Board of IMF approved financing arrangements under the EFF for $6.64 billion to support country’s economic reform programme.

Grey trafficking

The house was also informed that around 40 per cent grey trafficking is present in the country’s telecommunication sector - which is incurring huge losses to the national exchequer.



While responding to a question, Parliamentary Secretary for Interior and Narcotic Maryum Aurangzeb said that the Prevention of Electronic Crimes Ordinance 2007 (PECO) lapsed on November 4, 2009 and a draft of Prevention of Electronic Crimes Bill (PECB) has been prepared by the ministry of information technology, which is still under consideration at the ministry of law and justice.

She said that the rate of cybercrimes is increasing due to rapid financial gains, unavailability of appropriate legislation and criminal exploitation by some individuals.

Revealing plans to curb grey trafficking, the minister said that the government is working to enact an effective legislation to prevent cybercrimes and that serious punishment were being proposed against those involved in the act.

Published in The Express Tribune, January 28^th, 2014.