Ministers defend IMF’s $5.3 billion deal after criticism

In view of strong criticism at the government’s move to seek loan from the IMF despite its previous claim not to approach the international financial institution, the ministers are now defending the 5.3 billion dollars deal.

The loan agreement signed in Islamabad on Thursday has raised fear of hike in power tariffs.

Sartaj Aziz, a man behind the government financial and foreign affairs, had said last month the PML-N will not be in hurry to opt for the IMF money. However, Ishaq Dar, struck a deal with the IMF after days of hectic talks in Islamabad.

The government’s chief spokesman and Federal Minister for Information and Broadcasting, Pervaiz Rashid has said that the government was left with no choice but to enter a deal with the IMF to retire the debt accumulated over the last many years.

The Minister said we inherited an economy which was in shambles and the tough decision had to be taken in the national interest. We have taken this step to create fiscal space and strengthen the economy.

The Minister categorically stated that the loan from IMF had been taken to retire the previous debts. He dispelled the impression that the government would utilize the loan to overcome its budget deficit.

He said that the government’s policy to improve the economy was based on three basic principles i.e. strictly following the principle of austerity in expenditure, undertaking sale of loss-making state owned enterprises in avoid stress on the national exchequer and broadcasting the tax base to generate revenue.

The Information Minister further said that while entering the deal, the government did not blindly accept the IMF conditions including raise in power tariff and national interest was accorded priority over all other considerations.

“We did not opt for seeking financial assistance from different countries; rather we opted for a loan which we shall repay.”

The minister’s assertions may not convince the people as the public expect some positive change after the new government. But the government has added to the sufferings with one percent GST increase.

Oil prices were increased for three time in a month and CNG prices also hiked, the steps totally similar of the PPP.

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Posted by Tahir Khan on Jul 5 2013. Filed under Latest News, National, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.