State run companies huge burden on the economy; FATF to be handled amicably: Miftah Ismail

Advisor to Prime Minister on Finance, Mr.  Miftah Islmail today held a news conference in Islamabad where he gave a briefing on the state of economy.

While addressing the journalists, he said that “Economy is expected to grow by 6 percent in current fiscal year”. He also said that that the economy at the moment is not facing any problems.

Lauding the performance of Federal Board of Revenue, he said that, “Revenue collection showing continuous growth”. Furthermore, commenting on increasing trends in imports he said that “Power plant imports have increased considerably due to CPEC related investments”.

Regarding the current account situation he said that International Foreign exchange reserves now at 12.20 billion dollars. In addition to that, he said that on the external front, debt and interest payments amount to $3 billion.

Recently, the IMF Mission had raised alarm bells on Pakistan’s depleting reserves and weakening macro indicators. Commenting on that he said that, “IMF has a different mechanism for calculation whereas some of their worries regarding the state of the economy are justified.” But, he accepted the claim by IMF that “in the coming few years, the debt is expected to record a rise.”

Commenting on the state of national institutions, he said that “State Run Institutions are a huge burden on the population, the State Run Institutions are extremely in bad situation”. Furthermore, mentioning the huge number of employees in the Pakistan Steel Mills he said that nowhere in the world are so many employees currently on Government payroll.

He also shed some light on the future course of action regarding the Financial Action Task Force (FATF) decision expected in June, regarding which he said that “Government is currently looking at the recommendations of FATF”. We are looking upon what more could be done on FATF, a definite action plan would be finalized before the June decision.  

Mr. Miftah said that trade is also increasing, “Exports are to grow sharply in coming years, and the need to talk to China over Free Trade agreement (FTA) is also imminent”. He also assured the local manufacturers that the Government is on board with Chinese authorities to protect the local industry.

He said that the Prime Minister of Pakistan, “Mr. Shahid Khaqqan Abassi will announce the decision on Amnesty Scheme in the coming week”.

Mr. Miftah shared his optimism on the economy of Pakistan saying that, “After ten years GDP to hit 6 percent”.

“Which ever government will comes in power next, would not face any difficulties in repaying debt.”