Tarin makes startling revelation claiming inflation is down
Says rupee will bounce back when IMF loan programme will be finalized: Govt to raise petrol prices if global rates go up
PM Advisor on Finance Minister Shaukat Tarin has made a startling revelation that this year the rate of inflation has come down as compared to the last year, pronouncing that prices of articles plummet by 20% to 30% this year, reported 24NewsHD TV channel.
The finance minister also declared that he was expecting a good news from the International Monetary Fund regarding the release of the stalled loan programme.
Mr Tarin was addressing a presser during the inaugural ceremony of New Nazim Abad Hospital in Karachi on Sunday. He also attended an MoU signing ceremony between the Pakistani and Saudi investors in the provincial capital.
The advisor cautioned that there was a difference between import and export. We need to take such steps which could bring down the exchange rate.
He held that speculators were responsible for the devaluation of Pakistani rupee. “We are tightening our noose round them,” he assured.
Mr Tarin said the Pakistani rupee was undervalued by up to at least eight rupees.
He heralded that we had reached the final stage of the IMF deal and soon the country would receive a good news in this regard.
He appreciated the cooperation of Saudi Arabia which deposited $3 billion in the State Bank of Pakistan to shore up our reserves.
He was of the view that the Covid-19 pandemic raptured the food chain and prices of everything including oil, palm oil, steel, pulses, wheat and sugar went up all over the world.
“Inflation is a global phenomenon. But as compared to us, the purchasing power of people in America and Europe is much better,” he said adding that despite all this, the government did not raise the petrol price as much as it had been increased internationally.
However, he warned that there would be more raise in prices of petroleum products if the international rates jack up.
He was of the view that the government gave subsidy on the petrol levy and suffered a loss. He said prices of various items had come down by 20% to 30%.
The rueful advisor maintained that when the PTI took reins of power, the country was in the midst of crisis.
“We had to go to the IMF. The programme of the Fund is always harsh. On top of it, the country has to face the coronavirus epidemic,” he added.
Mr Tarin said that Prime Minister Imran Khan promoted the housing sector to dispel the economic slowdown during the Covid-19 pandemic. He also put emphasis on the industrial and agricultural produce export, he held.
The advisor was of the view that another reason for the wobbly development was a difference between import and export. The government tried to improve the agriculture sector.
He said that we needed 1.5 to 2 million jobs every year. Annually, we have to provide as much jobs because 60% of our population is below 30 years of age. We are heading to a new century with this mindset, he added.
Mr Tarin explained that the government focused its attention on generating more revenue.
“If we intend to attain 6% to 8% growth rate, then our revenue ratio should be 20% of the GDP. To achieve this objective, we worked on the tax system and included more people in the tax system,” he boasted.
He said government was investing in agriculture. “We have got bumper growth of cotton and could be able to sell 9.1 million bales this year,” he said.
He informed that the government was working on suggestions aimed at bringing improvement in the construction industry.
The advisor revealed that the IT sector showed a 47% growth. But we want IT sector to grow by 50%, he added.
Mr Tarin said steps were being taken to overhaul the power sector. He maintained keeping in view the current situation, it seemed that the economy would grow by 5%.
Mr Tarin said big companies were included in the Pakistan Stock Exchange.
Reporter Habib Khan