ISLAMABAD: Minister for Finance Ishaq Dar on Saturday said debt to GDP ratio will be brought down gradually to 57.5 percent from the present 63.5 percent to ensure fiscal discipline.
Discussing charged expenditure during debate on budget 2013-14 in National Assembly, he said the government has to pay loans of international financial institutions as default is not an option.
The PPP government took $ 8.5 billion in loans in one shot but it is matter of honour for Pakistan that loans should be paid and this year $ 3 billion in loans will be paid to the IMF.
He assured that new loans from International Monetary Fund would not be taken on dictated conditions.
He said fiscal deficit will be brought down to 3 percent in few years but now tough decisions have to be taken as the government does not want to resort to printing of loans and indiscriminate borrowing.
The Minister said 500,000 new persons will be brought in the tax net and the revenue target of Rs. 2475 billion for next year will be achieved.
He pointed that the State Bank cut its key interest rate by one percent which will benefit private sector and the government.
The Minister informed that similar to the decision of retiring of circular debt of Rs. 500 billion, the government will also pay off Rs. 450 million loan of Railways in one go.
He agreed with the idea that Railways should increase its freight load and go for public private partnership for running of trains as was done in developed countries.
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