‘There’s no evidence of Rs 430 billion’
Finance Minister Ishaq Dar has said the government does not have any evidence of Rs 430 billion being taken out by Pakistanis abroad adding the figure was based on media reports. The Minister stated this while addressing a news conference after a special meeting of the Economic Co-ordination Committee (ECC) which was convened to approve Rs 40 billion additional taxation measures. When the minister’s attention was drawn towards Pakistan Tahreek-e-Insaaf (PTI) Chairman Imran Khan’s statement that elite class has transferred Rs 430 billion abroad, the minister replied that Rs 430 billion figure was based on media reports and the government had no evidence in this regard.
He said that an FBR team had gone to Switzerland to renegotiate Article 26 (exchange of information) under convention on the avoidance of double taxation and prevention of fiscal evasion. He further stated that he was not aware as to how long it would take Pakistan to reach an agreement with foreign countries on exchange of information as it took the USA and Germany years to retrieve their citizens’ money from foreign banks. However, he stated that approval was taken from the Cabinet in 2013 to initiate renegotiations. Dar said that ECC has decided to maintain prices of petrol and diesel; however price of high octane (HO), kerosene and high speed diesel has been increased.
The Minister stated that Oil and Gas Regulatory Authority (Ogra) has proposed to the ECC a Rs 1.42 increase in per liter price of diesel and recommended a reduction of Rs 1.05 in per liter price of petrol. The ECC, he stated, has decided that price of petrol and diesel would remain unchanged but decided to implement the recommendations of regulator about other petroleum products. The ECC has approved Ogra’s recommendations regarding price of high-octane, kerosene and light diesel.
Dar added that as recommended by Ogra, the ECC approved an increase in price of high-octane from Rs 79.99 to Rs 80.60 and a decrease in kerosene and light diesel prices from Rs 57.11 to Rs 56.32 and Rs 53.59 to Rs 53.22 respectively. Dar also claimed that he has reduced expenditure by Rs 17 billion to limit the fiscal deficit to Rs 23 billion against a shortfall of Rs 40 billion. However, he did not specify from where these cuts were possible. The Minister further stated that expenditure of the government has increased significantly due to the Zarb-e-Azb operation and rehabilitation of the temporary displaced persons.
On a proposal submitted by the Ministry of National Food Security & Research, the ECC approved imposition of a 30% Regulatory Duty on import of maize. The decision has been taken in view of the abundant maize stock available in the country and a noticeable difference between price in local market and international market. The ECC also approved the proposal of Ministry of National Food Security, for fixation of Minimum Guaranteed Price of Rs 1300 per 40 KG for procurement of wheat crop 2015-16. Dar also claimed that reports of foreign debt had been baseless as foreign debt has declined to $51.5 billion from $54.5 billion. The Minister stated that of the total foreign debt of Rs $65 billion, $51.5 billion was public debt and the remaining was of private sector.
