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Pakistan eyes health certificate from IMF g
Positive letter of assessment from the fund will allow $2 billion from World Bank, ADB ISLAMABAD
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FTeR resolving the circular debt, expediting power sector reforms and restructuring state-owned entities, the government is hopeful of getting a “certificate of health” for its macroeconomic framework from the International Monetary Fund (IMF) at the upcoming talks under the consultations in Dubai from November 9 to November 17. An official source said the government had nearly implemented all its commitments to the IMF on reforms and hopefully the fund would issue a letter of assessment to the international financial institutions and other donors, who could then provide financial assistance to the country. The economic team would be leaving for Dubai after eidul Adha, as technical
talks with IMF will be held on November 9 to 13 while the policy level talks would be held from November 14 to 17. The government has already said it would not be seeking a new programme from IMF and the focus would be to get a certificate of health on the macroeconomic framework to keep getting project financing from the donors. WorLD BaNK, aDB: Pakistan is expected to start getting external inflows that will further improve the country’s financial position, even though it would have to begin returning $1.2 billion to the IMF from February next year. The World Bank and Asian Development Bank (ADB) are likely to provide $1 billion each for the power sector after the report, the source said. Under Article Four, the IMF holds a review of the economy of every member country once a year and then gives its report. The review for Pakistan has not taken place for the last two years, as it was under
an IMF programme and its performance was regularly monitored by the fund staff. After the suspension of the IMF programme in May 2010, external inflows from donors dried up but an increase in remittances and exports helped Pakistan stay afloat. One of the major concerns of the IMF was to bring the Rs 391 billion circular debt in the budget books, which was parked outside the budget to retain the fiscal deficit on the lower side. The IMF was concerned that the anomaly was affecting the health of the banking sector and the budgetary figures were not authentic, the source said. The government on Friday resolved the issue by swapping the Rs 391 billion circular debt TFCs into PIBs and T-Bills of the power sector and commodity financing operations on budget books. The move will increase the budget deficit by 1.8 percent of the Gross Domestic Prod-
uct (GDP) against the estimated budget deficit of 4 percent of GDP for the current fiscal year. This measure ended the anomaly and will end the financial crisis in the banking sector, which would in turn enable it to provide investment for power and other projects. Finance Minister Dr Abdul Hafeez Shaikh had said Pakistan would be retaining its relationship with the IMF, even though there was no need for a new programme during the current fiscal year, but if there was a need then the fund would be approached. He also said the revenue and power sector reforms would be pursued as under an IMF programme. The withdrawal of tax exemptions in March this year and improvement in revenue collection, reducing expenditures and not doling out any financial assistance to the state-owned Pakistan International Airlines and Pakistan Railways, who had been asked to firm
up their restructuring plans to get financing from banks, would help get a better assessment from the IMF. The government is negotiating with the ADB to get financial assistance to retire the circular debt as even after resolving the previous circular debt, another Rs 300 billion had piled up last year because of the tariff differential subsidy and line losses during the last fiscal year. The ADB is conducting a study to find a permanent solution. The government plans to induct new professional management in distribution and generation companies during the current month to end losses caused by inefficiency. The government also plans to increase the power tariff by 14 percent during the current fiscal year to avoid piling up another Rs 67 billion in liabilities because of the differential between the notified and applied power tariff.
Jd banned no more ISLAMABAD INP
ISLAMABAD: Children showing their affection towards a sacrificial animal ahead of eid.
Pakistan denies it moved nukes in insecure vans
ONLINE
Nawaz calls consultation meeting after eid
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Pakistan described as “pure fiction” a US media report that suggested American plans to secure the country’s nuclear weapons in the event of any extremist threat and said on Sunday that no one should underestimate its capability to defend its national interests. Foreign Office Spokeswoman Tehmina Janjua said in a press statement that the article titled “The ally from hell” published in The Atlantic was “baseless and motivated”. She also rejected the claim made in the report that the country’s nuclear weapons were “transported in delivery vans on congested and dangerous roads”, saying the report is baseless and motivated. The Atlantic had reported in its latest edition that Pakistan had begun moving its nuclear weapons in low-security vans. Janjua said the report was a part of a deliberate propaganda campaign meant to mislead opinion. The spokeswoman said: “The surfacing of such campaigns is not something new. It is orchestrated by quarters that are inimical to Pakistan. No one should underestimate Pakistan’s will and capability to defend its sovereignty, territorial integrity and national interests.”
Pakistan Muslim League-Nawaz (PML-N) President Nawaz Sharif has called a consultation meeting of the provincial presidents and key leaders of the party after eidul Adha to make the ‘Go Zardari Go’ campaign more affective. Nawaz has returned to the country from his visit to Turkey and Britain and has sought the record of the speech delivered by Punjab Chief Minister Shahbaz Sharif against President Asif Ali Zardari during the PML-N rally in Lahore. Nawaz also sought reports on
Pakistan People’s Party (PPP) leaders’ reaction to the speech, as well as a report on the party’s offices being set on fire in Sindh. Sources said Nawaz had decided to launch the anti-Zardari across the country soon after eid to rid the country of the current government. The party’s manifesto and coming elections would be discussed in the meeting and a decision on activating the district organisations to participate in the drive would also be taken, said the sources. An important leader said on condition of anonymity that the party’s district presidents would be sacked if the number of activists from their constituency were low.
Published by Arif Nizami for Nawa Media Corporation (Pvt) Ltd at Qandeel Printing Press, 4 Queens Road, Lahore.
The Jamaat-ud-Dawa (JD) is not included in a new list of 31 banned extremist and terrorist groups released by the Interior Ministry. The ministry released the list of banned organisations on Saturday as part of efforts to bar such groups from collecting the hides of animals sacrificed on eidul Azha, reported a private TV channel. Lashkar-e-Taiba (LT) was included in the new list, but the JD was not on it. After the 2008 Mumbai attacks the UN Security Council had declared JD a front for the LT. Following the attacks, Pakistani leaders such as Interior Minister Rehman Malik had said JD had been banned, however, during a hearing at the Lahore High Court in 2009, a senior law officer admitted that no notification had been issued to that effect. The new list of banned groups includes Jaish-e-Muhammad and its front organisation Khuddam-ul-Islam, Sipah-e-Sahaba Pakistan and its front organisation Millat-e-Islamia Pakistan, Al Qaeda, Tehreek-e-Taliban Pakistan, Lashkar-eJhangvi, Sipah-e-Muhammad Pakistan, Tehreek-eJaafria Pakistan, Tehrik-e-Nifaz-e-Shariah Muhammadi and Hizb-ut-Tehrir. Other groups on the list are Tehrik-e-Islami, Jamiatul-Ansar, Jamiat-ul-Furqan, Khair-un-Naas International Trust, Islamic Students Movement of Pakistan, Islami Tehreek Pakistan, Lashkar-e-Islam, Ansar-ul-Islam, Haji Namdar Group, Balochistan Liberation Army, Balochistan Republican Army, Balochistan Liberation Front, Lashkar-e-Balochistan, Balochistan Liberation United Front and Balochistan Musallah Difa Tanzeem. New additions to the list were People’s Amn Committee of Karachi, Shia Tulaba Action Committee of Gilgit, Markaz Sabeel Organisation of Gilgit and Tanzeem-e-Naujawanan-e-Sunnat of Gilgit-Baltistan. The Interior Ministry warned that any members of the banned groups found collecting animal hides during eidul Adha would be booked under the AntiTerrorism Act. Members of the banned groups cannot assemble, maintain offices, continue their activities and operate bank accounts, an official statement said. The Interior Ministry said all persons who want to collect hides would have to obtain permission from the district administration chiefs or district magistrates. Traders involved in purchasing hides were directed to deal only with sellers who had permission from authorities to collect hides.