Tag Archives: dollars

Budget Preparation Starts, Abolishing Pension and Increase in Pay Suggested

Budget Preparation Starts, Abolishing Pension and Increase in Pay Suggested


Shahid | January 10, 2018 | category: News

Budget preparation starts, abolishing pension and increase in pay suggested.The government has started budget preparations and commenced the consultation process with the concerned stakeholders including representatives of various chambers of commerce and industries and different business organizations.

In this regard Prime Minister Shahid Khaqan Abbasi has reconstituted his own team for preparing the budget for year 2018-19 as government is in hurry and interested to complete the work before the completion of the term of the assemblies.

The Prime Minister has appointed Haroon Akhtar Khan as his Advisor, with the status of Federal Minister, who will be responsible for the affairs of the Federal Board of Revenue (FBR), and consult with the business community to prepare the recommendations for improving the collection of taxes.

The Prime Minister has also appointed Miftah Ismail as his advisor who will be responsible for dealing with the international monetary organizations for seeking loans and other financial assistance from them. To deal with political elements, the Prime Minister has appointed Rana Afzal Khan as Minister of State for Finance, who will deal with the politicians and other local organizations to seek their proposals for the next budget.

According to sources of Ministry of Finance, the government has been working on a plan to abolish the system of pension and the salaries of the government servants will be increased accordingly to the level of private sector so that the financial burden on the government for the payment of pension could be abolished. In this proposal, which will be very difficult to be adopted by the government in its last year of the tenure, the government has received suggestions that instead of giving pension, the government officials will be given handsome salaries so that they can save sufficient money at the time of retirement.

The government has also discussed this proposal with the International Monitory Fund (IMF), the main lender of loans to Pakistan but still there is no progress on this proposal and it will be further discussed at various levels in the Ministry of Finance before the finalization of the next budget.
Meanwhile, the government has also discussing the proposals to increase the funds for improving the basic needs of life including power, provision of water, gas, health facilities, education and other such basic facilities and huge amount will be allocated in the next budget so that they can seek the support of the people on the occasion of the next elections.

The sources in the Ministry of Finance said that during the recent meetings of officials of Finance Department with the representatives of IMF, Pakistan has been advised by the IMF to prepare a three year frame work which include reduction on the foreign loans, prepare a comprehensive strategy for improving the debt payment in the next three years, as Pakistan has to pay back nine billion dollars during 2018 against the loans secured by the country.

The IMF also advised the officials of the Ministry of Finance to chalk out comprehensive strategy and take adequate and effective measures to reduce the trade deficit which has increased to US dollars 36 billion. In this regard the financial team of the Prime Minister has also been asked to prepare recommendations for increase in the revenues by the FBR, give incentives to increase foreign remittances and other such options.

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Pak-rupee

Rupee depreciation inflicts great loss to economy


Sumera Saeed | July 11, 2017 | category: Business

As the recent local currency depreciation has inflicted great loss to the national economy and cost of deals done by the businessmen with their foreign counterparts have jumped manifold, the All Pakistan Business Forum (APBF) has urged the government to control surge of dollar against rupee,.

APBF president Ibrahim Qureshi observed that the widening current account deficit, excessive government borrowing, absence of foreign flows increasing oil imports and lack of foreign investment are the vital reasons for the sudden depreciation of Pak rupee.

Pakistan’s rupee was overvalued by at least 20 percent and has a negative impact on the country’s exports. The local currency last week dropped the most in nine years amid rumours of devaluation due to surging trade deficit and shrinking exports of the country. The rupee hit its lowest level since 2013 by shedding value of more than 3 per cent to 108.1 against the US dollar. The country’s economy came under severe pressure due to surging trade deficit on the back of falling exports and a sharp increase in the import bill.

The trade deficit soared 42 per cent to an all-time high of $30 billion in first 11 months of financial year 2016-17. In May, trade deficit surged 61 percent to $3.465 billion, according to the latest data released by Pakistan Bureau of Statistics. The import bill during July-May 2017 period rose 20.6 percent to $48.54 billion. It is expected to reach over $53 billion this fiscal year. In the 11 months through May, the export dropped from $19.14 billion a year ago to $18.54 billion, putting pressure on the currency.

APBF president said that the devaluation always pushed inflation on higher side and made the common life miserable in past and this seems to be going happen again.

The APBF president observed that causes of depreciation of a currency are multiple which in combination push and pull the respective currency’s quotation in conjunction with other currency. If there is more demand for dollars in Pakistan than the supply, rupee would depreciate. So, the government should take steps to commence trade between Pakistan and China in local currencies with special emphasis on greater Chinese investment in Pakistan’s lagging value-addition economic activities for making meaningful improvement in bilateral trade balance, he added.

He feared that if notice of the situation was not taken immediately, rupee would go further down within next few days, as demand of dollars may be created by importers requiring more dollars to pay for, foreigners withdrawing their investments and taking the dollars outside.

Ibrahim Qureshi said that actions of the government are not new and nothing is different of what was happening in past governments as only faces have been and no strategy or solid plan is seen for restructuring of the institutions.