Making budget with IMF was real tough task: PM

LAHORE/ ISLAMABAD: Prime Minister Shehbaz Sharif said on Saturday making a budget in consultation with the International Monetary Fund (IMF) was a real tough task.

In an exclusive talk with this reporter, he explained that on the one hand, there was pressure from the IMF and on the other hand, he was to take care of the public expectations, problems and difficulties.

The premier said he saved the public from many more taxes through continuous discussions with his team and direct talks with the IMF team. He said he continued supporting his team and gave them instructions at every important financial issue for saving the people from the impact of tough decisions.

The PM said had the government accepted all directions of the IMF, there would have been more burden on many sectors, which would have increased difficulties for the government. The IMF was insisting on taxes on agriculture and more taxes on fertilisers, and it was not ready to back down. “I had a long discussion on each point and the matter was settled and no more taxes were imposed on agriculture and fertilisers,” Shehbaz disclosed.

He said the IMF insisted that many medical equipment should also be taxed. It even wanted tax imposition on medical equipment for charity hospitals. “I convinced them in this regard and such taxes were not imposed,” the PM said.

Shehbaz said many other taxes were also discussed one by one, and those were agreed upon after long discussions, which was not an easy task. “My whole team did a good job,” Shehbaz said and added the economy had been placed on the right track now. “We will fulfil the dream of a strong economy; there are clear and positive messages of investment in Pakistan by the friendly countries,” added the PM.

He expressed his optimism that it would be Pakistan’s last agreement with the IMF and the budget under it, after which people would get more relief. He said due to continuous efforts of the government, inflation had reduced from 36pc to 11pc, and hoped that it would further decrease in the coming months.

In response to a question, Shehbaz said the issue of petroleum price hike and levy increase was not related to the IMF and it was related to the incumbent government.

To another question, PM Shehbaz termed regrettable the reaction of opposition parties on the resolution in response to the US house resolution about the Pakistan elections. He said Pakistan is a sovereign and independent country and “this policy of ours is very important for us. We cannot compromise on it”.

Separately, PM Shehbaz Sharif Saturday ordered for completing the process of winding up of Public Works Department (PWD) at the earliest. He chaired a meeting in this regard on Saturday and discussed the alternative arrangements. The meeting was briefed on the plan to dissolve PWD, implementation of ongoing projects, alternative to PWD and outsourcing of construction and repair work to private companies.

The meeting was informed that the ongoing projects under PWD would be completed by the relevant federal and provincial departments whereas no further project would be assigned to it. The meeting was told that construction and repair work would be outsourced to the private companies of international standard.

PM Shehbaz ordered for protecting interests of PWD employees during the dissolution process. He said a comprehensive and practical plan should be formed to ensure their welfare. He said he himself would monitor the process of PWD dissolution. He also ordered formation of an asset management company to manage PWD’s assets and digitise its records.