Finance Minister says ‘Pakistan’s basic debts are so big that we are near bankruptcy’

[Pied Piper]

Salaam !

https://www.thenews.co452973-financ...o-big-that-we-are-near-bankruptcyr-bankruptcy

Finance Minister says ‘Pakistan’s basic debts are so big that we are near bankruptcy’
National
Web Desk
April 03,2019
He said “If you look at the numbers from PMLN time, there was double digit inflation during PMLN time which we have thankfully not hit as yet.”

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ISLAMABAD: Finance Minister Asad Umar has claimed that Pakistan basic debts are so big that we are near bankruptcy.

The Finance Minister said this in Special Q&A Session with Social Media activists in Islamabad here Wednesday.

“You are going go the IMF with these massive debts in toe for a bailout. We have had to fill big gaps” said Asad Umar.


He said “If you look at the numbers from PMLN time, there was double digit inflation during PMLN time which we have thankfully not hit as yet.”

To a question about rising inflation, Asad Umar said “If you look at the past, inflation affected all stratas of society equally. In fact the poor had higher levels of inflation affecting them.”

“In our tenure this has seen a different trend with the poor feeling relatively less inflation as compared to higher income groups.”

Quoting Hafiz Pasha, finance minister said, Pasha has written that unemployment grew in both PPP and PML-N tenures. “But I will not paint a rosy picture because yes the economy has slowed down, so we are not seeing job creation at a high rate right now.”

To a question, Asad Umar said “You’re saying all my policies are like Ishaq Dar, Ishaq dar says I’ve destroyed the economy! During his time, for the first time in Pakistan’s history our exports didn’t grow.”

About rupee depreciation, dollar has climbed because of economic policies that have led to such huge losses for us as a country. “It’s a basic demand and supply situation.”

The external loan taken by PTI government in 9 months from July-March is 1/3rd of the loan taken by PMLN in same period last year, he said and added "when you see us hit the 12 month mark of our government, it is my prediction that you will see a $6-7 bn decrease in our Current Account Deficit."

 

[Sine Nomine]

Anni diya aye mazak aye

 

[Beast]

Pakistan has 2 big backers of China and Saudi. Bankruptcy is a distant thing.

Geroge Soros make a fatal mistake when he attacked Hong Kong finance in 1997 asian crisis.

He forget Hong Kong has China as backer to shore up its finance and end up he loses billions of dollars himself.

Some spot that appear weak maybe the strongest.

 

[VCheng]

Finance Minister Asad Umar has claimed that Pakistan basic debts are so big that we are near bankruptcy.

But weren't we told that the "crisis is over" not that long ago? Did I miss something here?

 

[Ali Tariq]

Asad Umar defends govt's economic policy, acknowledges painful impact

Finance Minister Asad Umar addresses a QnA session. ─ Dawn.com

Finance Minister Asad Umar on Wednesday addressed a live Question and Answer session on the state of the country's economy.

The session, broadcast live across social media accounts of the ruling Pakistan Tehreek-i-Insaf (PTI), saw the finance minister answer the queries of an assortment of journalists.

Umar identified the primary reasons why the economy is in a bad shape but assured that there will be light at the end of the tunnel.

"There are two reasons why were are in this mess. We have a budget deficit, and secondly, our external deficit," he said. "To resolve this you either need to increase exports or decrease imports. Our immediate action was to cut imports, which slows down the economy.

The minister likened the economy to a patient who is going under the knife in the operation theater. "The person is being operated on and it seems that he has been cut open but the fact it that he is being operated on to [rectify fundamental problems]."

When asked how the government would come good on its promise to create two millions jobs a year, Umar said: "They say that if the economy does not grow at a seven per cent rate, two million jobs won't be created. As a rule of thumb that [reasoning] is fine, but it [job creation] also depends on what our priorities are.

"Tourism, SMEs, IT, and housing all are priorities, and all these sectors have the potential of job creation. Some investments create more jobs, some less. There will be growth from year three onward but it would be sustainable and long term.

"In September, I went to the PSX and I was asked the same question that when would growth be seen in the economy. I told them that we'd go through a stabilisation period of two years after six months of extreme turbulence. Then there will be growth. And now that we are out of survival zone, the purse strings will be loosened."

The federal government recently raised the prices for petroleum products by up to 6.45 per cent. When the minister was reminded that during the PML-N government he had suggested that petrol prices should be set at Rs46, he contested the claim

"I had never said that petrol should be Rs46. I had said that tax should be lower than it was," he said. "Tax ratio at the time was 52 per cent, right now it is 30 per cent. Had we kept the same taxes as before than we could have gathered Rs97bn more from Pakistani public. We have actually lowered the tax ratios."

"Ogra (Oil and Gas Regulatory Authority) does petrol price's calculations. On April 1, when the new prices were recommended, the only thing the government did was reduce the recommended price by Rs5," he added.

A day earlier, Umar had announced that the government is planning to introduce another amnesty scheme to provide non-filers of tax returns an opportunity to whiten their undeclared assets at home and abroad. The finance minister today acknowledged that the idea of amnesty schemes is controversial but said it is the need of time due to the prevalent system.

"Tax amnesty is controversial, of that there is no doubt," he said. "You can say that it is facilitation of tax evaders which would be a fair point. In my viewpoint, my previous objections are valid today as well. But after consultations, the majority's view is that it should happen because in Pakistan the system had been such that we want to give people a chance to come into the tax net.

"However, if amnesty scheme does come, public officers and civil servants won't be eligible, even though some journalists have pointed out that they have the most money."

The finance minister again defended the government's decision to not rush into an International Monetary Fund (IMF) programme.

"Is the economy in this state for the first time in Pakistan? We have two world records: one in trolling and the other in entering IMF programmes. I talked to IMF officials and told them that 'I don't want to burden my nation with more loans'. They told me that the situation we have inherited has never been inherited by anyone else.

"When you take a responsibility you also have to take a position. They used to say that IMF programme should be taken immediately so that markets don't run away. After six months, our reserves are in a better shape. I did not rush into an IMF programme just to avoid criticism. Having said that, an agreement will be reached soon."

Prime Minister Imran Khan recently indicated that Pakistan was on the verge of hitting a kind of jackpot in the form of discovering a huge reserve of oil and gas. The finance minister today gave an update on ExxonMobil-led consortium's offshore drilling.

"There is deep offshore drilling being done 250km away from Pakistan. They have to drill 5,000m deep, of which, last I checked, they have so far drilled 3,500m. There was some delay due to rocky formation. When they reach 5,000m we will know what the find is. But we know that it's potential is big. It's a high-risk operation. ExxonMobil invests when potential find is massive. If oil is found, it will be a massive find."

MoIn Febreuary, Umar had said that talks to bring PayPal to Pakistan were [underway][4]. When reminded of those plans today, Umar struck a less definitive tone, asking his team to follow up on those plans. "The IT ministry was given the task. They had to go in January. It hasn't been done so far but we are trying. But AliPay is here," he said.

When asked why the Federal Board of Revenue (FBR) has not done enough to raise awareness regarding tax benefits and incentives that come with entering the tax net, Umar asked Minister for Revenue Hammad Azhar to answer the query.

"It's right that FBR's optics are lacking," Azhar said. "There is a lot of work to be done and there is an awareness deficit. We did do a concerted advertisement campaign, following which a 34 per cent increase was witnessed in on-time filing. But we should do a sustained campaign. We actually want to delve deep down and correct FBR's fundamental problems. Once those are done, there will be a visible change and then we will [run more awareness campaigns]."

 

[Imran Khan]

so what he want from nation ? he has to do something

 

[VCheng]

I talked to IMF officials and told them that 'I don't want to burden my nation with more loans'.

Then make the decision not to take more money from the IMF. It is YOUR choice and your DECISION under PMIK's leadership. IMF is not forcing you to burden your nation with more loans.

 

[Ali Tariq]

Then make the decision not to take more money from the IMF. It is YOUR choice and your DECISION under PMIK's leadership. IMF is not forcing you to burden your nation with more loans.

Bas aap ke mashware ka hi intizar tha, Janab.

 

[VCheng]

Bas aap ke mashware ka hi intizar tha, Janab.

I did not give any mashwara, but merely pointed out that it is a decision to be made by the present government under PMIK's leadership to decide whether to take more loans or not. Either choice will come with its own sets of pros and cons.

 

[niaz]

Thank you Asad Umar. At least you have not painted the false rosy picture that everything will be fine when PTI is in power. It may be a bitter pill, but it is the best policy to let the joe public know the ground realities.

It appears that Kaptan had, in fact, jumped the gun with the oil discovery. What Asad Umar says is the correct situation. We all hope that it will be a big find, but no one can be certain whether oil /and or gas deposits are there or not unless we complete the target drilling depth. Biggest in Asia! only a prophet or a 'Peerni' could accurately forecast the size of the deposits even before the same is found.

 

[313ghazi]

He should be outright honest and tell people that inflation will continue for the next 2-3 years and we will bring in austerity measures in order to recitify the economic situation of the country.

 

[Maarkhoor]

Anni diya aye mazak aye

I am not surprised since I know him very well and his capability and if he continued I am sure Pakistan will go bankrupt.

only a prophet or a 'Peerni' could accurately forecast the size of the deposits even before the same is found.

 

[maximuswarrior]

Realistically the economic crisis won’t be over for another decade. It can ease over the next few years only if the right corrective measures are taken.

Pakistan is the Greece of our region. We have been living above our means. PML-N and PPP have absolutely destroyed Pak economy. Add to that the crushing cost of US war on terror and the picture is complete.

What did Pakistan get in return by voting for PML-N and PPP? What did Pakistan get by allying with the US? Everyone can do the math today.

The debt and loans are like a high fever. You can keep taking an aspirin, but the fever won’t disappear immediately. This will be a slow and painful process. That is the price you pay for electing and re-electing crooks.

Where are the distinguished former finance ministers of Pakistan Ishaq Dar and Shaukat Aziz? I heard one is enjoying his vacation in the UK and the other is selling his country in the USA?

The bad news is that after PTI term we might get back to our old ways of electing crooks and thieves. In other words, from recovery back to thievery and corruption.

 

[CrazyZ]

We need to create a sense of crisis or no actions will be taken for reform. Let's see what PTI does with this.

 

[ziaulislam]

Salaam !

https://www.thenews.co452973-financ...o-big-that-we-are-near-bankruptcyr-bankruptcy

Finance Minister says ‘Pakistan’s basic debts are so big that we are near bankruptcy’
National
Web Desk
April 03,2019
He said “If you look at the numbers from PMLN time, there was double digit inflation during PMLN time which we have thankfully not hit as yet.”

ShareNext Story >>>

ISLAMABAD: Finance Minister Asad Umar has claimed that Pakistan basic debts are so big that we are near bankruptcy.

The Finance Minister said this in Special Q&A Session with Social Media activists in Islamabad here Wednesday.

“You are going go the IMF with these massive debts in toe for a bailout. We have had to fill big gaps” said Asad Umar.


He said “If you look at the numbers from PMLN time, there was double digit inflation during PMLN time which we have thankfully not hit as yet.”

To a question about rising inflation, Asad Umar said “If you look at the past, inflation affected all stratas of society equally. In fact the poor had higher levels of inflation affecting them.”

“In our tenure this has seen a different trend with the poor feeling relatively less inflation as compared to higher income groups.”

Quoting Hafiz Pasha, finance minister said, Pasha has written that unemployment grew in both PPP and PML-N tenures. “But I will not paint a rosy picture because yes the economy has slowed down, so we are not seeing job creation at a high rate right now.”

To a question, Asad Umar said “You’re saying all my policies are like Ishaq Dar, Ishaq dar says I’ve destroyed the economy! During his time, for the first time in Pakistan’s history our exports didn’t grow.”

About rupee depreciation, dollar has climbed because of economic policies that have led to such huge losses for us as a country. “It’s a basic demand and supply situation.”

The external loan taken by PTI government in 9 months from July-March is 1/3rd of the loan taken by PMLN in same period last year, he said and added "when you see us hit the 12 month mark of our government, it is my prediction that you will see a $6-7 bn decrease in our Current Account Deficit."

Title should be were...
Pakistan was deliberately put in bad position by negligence of executive and establishment