No plans to go to IMF for bailout package: Dar

Special Correspondent 

ISLAMABAD: Finance Minister Ishaq Dar on Monday ruled out possibility or plan of the government to go for an International Monetary Fund (IMF) balance of payment (BoP) support programme.

Answering questions in a press conference, Dar strived to express confidence on the level of foreign exchange reserves and strong internal fundamentals of economy chiefly growth in tax collection to ward off pressure on the external payments.

"We do not need to go back to the IMF, nor there was any plan of the sort," he said answering not just a journalist's question but also concerns raised in this regard by none else but the central bank of the country.

However, he admitted, at the same, a sizeable decrease in the foreign exchange reserves that came down to US 14 billion after touching peak of $18.9 billion a year ago. According to the Finance Minister it was not the worrisome level of reserves.

To a question on the concerns about the risks and perception shocks to the economy underlined by the Chief of Army Staff General QamarJavedBajwa followed by his spokesman Major General AsifGhafoor, Dar referred to earlier statement by his colleague Federal Minister AhsanIqbal.

A day earlier Ahsan who has the portfolios of Interior and Planning, had dubbed the issue as closed after what he had termed as "explanation" by the Director General Inter Services Public Relations (DG ISPR) as against his prior agitation against latter's statement on economy. On the other hand, the DG ISPR also had addressed a press conference the other day to, interalia, uphold his earlier statement on economy.

Asked about the possibility of his stepping down as Finance in the wake of a lot of criticism after his indictment by a National Accountability Court under a corruption reference, he said, "The prerogative to decide about my portfolio lies with Nawaz Sharif as head of the (ruling) party."

When the questioner insisted to ask about Dar's personal decision, he threw a pale smile to say "you better wait for some time." His body language was not supporting him as he was Ishaq Dar with a changed tone and tanner. During a press conference he appeared a bit down perhaps due to fact that earlier in the day the NAB court hearing his case had declined his application seeking exemption from appearance in person.

In his brief statement to the media, the Finance Minister said that the government was focused on the 'higher growth of the economy. Our real objective should be higher growth that would steer the economy to the right direction," he added. He claimed that the government was focused on not losing the growth target of six per cent. "We have monitored, managed, and controlled expenditures to a large extent," he added.

He presented the theoretical number of inflation at 4.2 per cent against the price inflation in double digits in the event of rupee fast losing its value against the American dollar, to claim it as one of the strong economic indicators. "The interest rates are lowest in decades," he added

He also claimed reducing the circular to below the mark of Rs 400 billion from the hefty 503 billion which he said his government had inherited from the previous government of PPP. He declared reduction of circular debt as an achievement especially in the event growing needs for infrastructure investments to reduce power outage from the peak of 18 hours a day besides the increased spending on security and law enforcement apparatus.