ISLAMABAD: Caretaker Finance Minister, Dr Shamshad Akhtar, has said that lack of fiscal discipline, increasingly high foreign debt, massive non-development expenditure and inflation have impacted the lives of poor.

She made this charge sheet against previous governments at a maiden meeting of Federal Cabinet while sharing problems related to Ministry of Finance and Revenue. However, she did not speak about the impact of International Monetary Fund (IMF) program which is one of the major causes of hardships of common man.

According to sources, Foreign Minister Jalil Abbas Jilani told the meeting that China is Pakistan’s old strategic and economic partner. To strengthen the bilateral relations further, he added, there were some areas which require clarification for removing misunderstandings developed over the past few years. The Minister hoped to have a closer relationship with China in all fields.

Shamshad highlights importance of reducing fiscal deficit

With reference to the US, the Foreign Minister said that there were certain expectations from the US side. In this regard, it was hoped that steps shall be taken with consensus of the Cabinet for meaningfully engaging with the US.

For India, the Foreign Minister stated that normalisation of relations with India can happen only when India withdraws from its position that it took over Indian illegally Occupied Jammu & Kashmir on August 5, 2019.

On Afghanistan, the Foreign Minister shared his concerns that things have been worsening due to recurrent terrorism. However as Pak-Afghan trade is improving, there is a hope of improvement in the bilateral relations between the two countries.

The Foreign Minister stated that there was enormous economic opportunity for Pakistan in the Middle East. It was further shared that Saudi Arabia had already committed for investment in IT, energy and Defence sectors in Pakistan. UAE had also shown keen interest in almost all areas. Qatar has also indicated to invest $3 billion in Pakistan and requested to share the development areas/ projects looking for financing from Qatar.

However, Minister for Finance and Revenue stated that the ongoing fiscal and external account crises had emerged due to lack of financial discipline. The foreign debt was increasingly high and the non-development expenditure had also risen. It was added that all these factors along with inflation had impacted the lives of the poor.

It was added that Pakistan needs a holistic approach to get out of the present crises and investment in solid projects is needed to grow on sustainable basis. The Finance Minister added that in view of the prevailing financial crunch, Finance Division will not be in a position to entertain any expenditure request during the interim period.

Minister for Commerce and Industries, Gauhar Ijaz informed the Cabinet that the IMF Program had impacted Pakistan’s trade. Since both the sectors, finance and energy, were interlinked under the IMF program, it has also affected the export industry.

It was further stated that the Country’s trade has dropped down to $ 30 billion. He further shared the businessmen’s thumb rule that for every USD 1 billion loss in trade/ investment 1 million jobs are lost.

In view of the prevailing current account deficit, circular debt and inflation, the Minister said that increasing exports is the biggest challenge. It was desired by the Prime Minister that Minister for Commerce shall come up with a comprehensive plan.

Minister for Interior stated that Pakistan had long suffered from terrorism, in particular on its western border. He re-iterated the resolve that the fight against terrorism will always be fought for the right cause and right values.

The Special Assistant to the Prime Minister on Human Rights stated that as a direct stakeholder in the struggle for the Indian Illegally Occupied Kashmir, this platform would provide her with an opportunity to raise the voice of Kashmiri people at global forums.

Moreover, the SAPM indicated that her focus would remain human rights and women empowerment.

Minister for Information indicated some areas for immediate attention by the Cabinet in view of anticipated questions from media, like holding of elections and issues related to national economy.

The Prime Minister responded that elections are the responsibility of the Election Commission of Pakistan as a Constitutional body. It was added that ECP shall assess its requirements and then conduct the elections. The caretaker government will fully support and stand by ECP.

The Prime Minister further stated that all are equal before the law and due process of law shall prevail. He encouraged positive criticism.

The Minister for Defence stated that National Security and defence issues are all inter-linked, so a ‘whole of nation approach’ is needed. He expressed that hope is the trigger to our national success.

Minister for Communications shared his views with the Cabinet stating that the focus of NHA shall be priority areas of road networks to be completed such as Hyderabad-Sukkur and Kharian-Sialkot projects. The Minister informed the Cabinet that the model of PPP mode would be adopted for timely completion of the projects as the same proved successful in ML-1 Multan to Lahore Project. In context of Railways, the Minister apprised that Multan-Lahore is a commercially viable route.

The Cabinet Secretary informed the Cabinet on the manner of disposal of cases under rule 17 (1) (a), (b) and (c) of the Rules of Business, 1973. The Cabinet was informed that in view of Mustafa Impex case, a number of routine cases also come to the cabinet for a decision.

To save time for more serious deliberation in the Cabinet on issues of national importance, he proposed to continue with the disposal of routine cases through circulation. It was informed that through use of technology/ e-Cabinet, the Ministers may respond to the summaries/ cases.

The Ministers, Advisers and Special Assistants to the Prime Minister were also requested to provide the details of the assets on the prescribed format, along with declaration of nationality and conflict of interest, if any.

Copyright Business Recorder, 2023