WASHINGTON : Pakistan’s finance minister, Mifta Ismael, who is leading Pakistan in crucial talks with International Monetary Fund (IMF,) here, on Sunday hinted at withdrawal of subsidy on fuel and power as it, in his opinion, was adding to Pakistan’s economic problems unnecessarily . Dr Aisha Ghaus Pasha , his junior in Finance ministry and Pakistan’s ambassador to Washington , Masood also flanked Mifta Ismael during the press conference .
Responding to a volley of questions at a press conference , Mifta Ismael said the government is providing subsidy on fuel to give relief to commoners, but its major beneficiaries are not pro poor , but those who are filthy rich. He quoted his own example and said ” Mifta Ismael who is industrialist is getting Rs 1600 per month as subsidy on fuel consumed by his personal car and his business activities are getting another subsidy of Rs 7,50000 per month on fuel consumed by his trucks that deliver industry products to the different parts of the country,”. adding ” I am not the only case its general practice and who is paying for this huge subsidy being enjoyed by industrialist , businessman and other well off people of Pakistan and then told the press conference that these are the people of Pakistan are paying for subsidies and the country can not afford to keep on doling out billions of rupee as subsidy to those who actually do not deserve”.
The Finance minister ruled out the possibility of raising tax on income in current financial year , but cautioned the nation that tough decisions would be taken in near future to stop economic melt down.
He also dispelled the impression that Pakistan could default on its repayment commitments in the current economic crisis. Mifta said ‘ Pakistan will honour its obligations and commitments made to its donors and there was absolutely no risk of any default on its part,,”. He also told a questioner that Imran Khan government’s commitments with international community will be honoured by the new government of Pakistan. He clarified that Imran Khan government did not pay even a single penny for ‘Lunghar Khana’ programme as it is a baby of Silani Welfare Trust and assured availablity of funds to keep the deserving getting food at ,,”Langhar Khanas” across Pakistan.
The Finance minister said initial talks with IMF have been very successful and both sides have agreed to have technical level talks from Monday next. He said the new government will leave more reserves and bring down inflation before leaving the office next year.
