C/A, budget deficits major challenges: adjustment in exchange rate starts bearing fruit: Miftah

Advisor to Prime Ministry on Finance Miftah Ismail Thursday termed current account deficit and budget deficit as major challenges to national economy. Speaking at a seminar on national economy, he said five percent adjustment in exchange rate made in December 2017 has started bearing fruit with decrease in trade deficit and increase in exports, with encouraging number of exports for February 2018.
He also said that the government has successfully dealt with the challenge of load shedding in the last five years and there is surplus power but the government does not provide electricity in the areas where theft or non- payment of bills is beyond a certain limit.
He said that the next government would have to undertake three basic reforms, including changes in agriculture policy, privatization of public sector enterprises and NFC Award. He said amendment in NFC award is necessary because previous one had made the federal government financially very poor.
He was also critical of fixing support price of agriculture sector and stated the sugarcane price was fixed at Rs 180 per 40kg when the price of commodity was lower in the international market and as a result, the millers were not ready to pay the fixed price to the farmers. He was of the view that the sugarcane price should have been Rs 140 per 40kg but the provinces increased the price to Rs 180 per 40-kg.
He said that Pakistan's GDP growth is expected to remain at 6 percent this year and 7 percent during next fiscal year while inflation has decelerated to 3.8 percent in first eight months of the current fiscal year and tax collection is increasing.
Ismail said that the government installed new power plants and they would add 12,000MW to the national grid up to June 2018. The gas import continues as they imported 1200 million cubic feet and 600 million cubic feet more would be imported.
He also stated that government can offer buyers of Pakistan International Airlines (PIA) Pakistan Steel Mills (PSM) free of cost. After the ceremony, when media persons inquired about his offer for PIA and PSM, Ismail said that the PSM can be given free if the buyer is ready to take it along with its existing debt.