The Government Said About Rule Budgets

On Wednesday, the government said it would rule out all budgets and improve revenue collection through technology and administration, in the near future in the criticism of lawmakers and opposition lawmakers over price hikes and other monetary and fiscal policies. measure. The meeting is at the heart of the Standing Committee Meeting on the Finance and Revenues of Parliament, presided by Asad Umar, and chaired by the Finance and Governing Advisors of the Bank of Pakistan (SBP) of PM.

The Commission reported that

Inflation as measured by the Consumer Price Index, decreased from 11.6 percent in August to 10.5 pcs due to a base year change between 2007-08 and 2015-16. Asad Umar wondered what inflation rate the SBP could consider for policy rates. He said the CPI has been on the rise for the past few months and that the government should take action to find out why. He said the Pakistan Competition Committee reported a clear conspiracy in sugar and flour ratios, while the prices of onions, chicken and sugar rose 66pc, 65pc and 7pc respectively.

The NA panel said the National Price Management Board attended meetings several months before the monthly meeting. Hina Rabbani Khar of the Pakistan People's Party said that inflation now affects the majority of people and that fiscal and monetary policy regrets contracting pay and income and raising inflation. Ramesh Kumar of Tehreek-i-Insaf in Pakistan said he warned the government that wheat prices would rise six months ago. He said Sind's factories were full of wheat and exported in bulk.

He was recently tense and criticized the government, which banned the import of medicines from India, and said it was unrealistic and should be changed. Pizu's former chairman Faizulla said that the Ramazan and Sasta bazaars, established under the current government, have become a source of corruption instead of benefiting the public and subsidies provided by the government. The government did not get relief through the bazaar promised by us and the party," he said.

Dr. Aysha Ghous Pasha of Pakistan's Muslim League-Nawaz said the government's measures to solve the poor issue were ineffective. PPP's Naveed Qamar said SBP's monetary policy caused the plant to shut down, but it did not affect prices as interest rate hikes led to industrial and economic contractions.

Treasury Secretary Kamran Baloch acknowledged

He and his team could not arrange proper briefings on prices, and proposed a strategy for inflation at the next meeting. He regretted that the National Price Control Board, led by the Treasury Advisor, held a meeting instead of months ago. Asad Umar agreed with members that the economic team should be prepared to explain the macro-policy stage through fiscal and monetary policy on inflation, and that there is no greater problem than inflation at present. The advisor and governor [SBP] should have time to help them and the government for the finance committee," he said.

He also questioned last year's fiscal deficit and expenditure surge, although the budget was announced on June 10 and asked how spending of 800 billion rupees in the last 20 days could exceed expectations. “Someone has manipulated the system somewhere. It is a big item. The fiscal deficit was another problem, but added that budget estimates could go wrong in the short term. As finance minister, he said the basic idea of ​​discounts to the industry was to lower fertilizer prices as gas prices rose.

But he did not know the latest regulations. He believed that the government would make a statutory investigation into the Gas Infrastructure Development Seth (GIDC) that PML-N passed in 2015, but the initial attempts at PPP in 2012 could not survive. La Messi Kumar called for the issue of the GIDC amendments to be referred to the State Bureau of Responsibility.

The government's decision to offer a deal

Government's decision to offer a deal for several industries as a result of the government's sudden decision to pay a debt of 416 billion rupiah (GIDC) unpaid gas infrastructure development, a 50% discount, within a week after the issue was disappointing. The withdrawal of the bylaws will not only imply a long-standing legal debate over the legitimacy imposed between governments and defaulters, but will also negate the proposed reductions in the rate of interruption for future collections. Abolition of the bylaws is unfortunate.

Khurram Mukhtar, chairman of the Pakistani Textile Exporters Association in Faisalabad, said, "The government and industry have both lost the opportunity to clean and restart the slate." He said that this decision will not affect the Punjab industry because most gas consumers have already paid a significant portion of their debt. But it will affect industries based in Sind and Karachi, they add. Similar views were expressed by many entrepreneurs in other industries subject to GIDC imposition. 

The implementation of this transaction has given the government a certain amount of income in the future, and the industry covered by the GIDC Act will save money (after lowering rates) while reducing costs, as well as cutting outstanding debt. There was. Court case, ”former former Pakistan Textile Factory Association president SM Tanveer mourned.

According to an executive of one major fertilizer company

The ordinance has carried out some technical deficiencies and ambiguities” in regards to applicability for almost a year from January 1, to about 120 billion rupees in the fertilizer industry until the unpaid dues are resolved Comply with withholding agreements that have resulted in a loss of degree. Moreover, he pointed out that the reconciliation transaction benefited those who paid less, while the fertilizer sector was likely to lose 65 billion rupees due to the discriminatory application of the ordinance, which the reconciliation sector is now abolished.

We also failed to adequately address the repetitive communication among industry players regarding GIDC's retroactive treatment of new policies and the application of GIDC to expensive gases already procured under the 2012 oil policy. And there was also ambiguity about him. Late payment surcharges apply. But he thought the deal would allow the industry to free up space to breathe and lower element prices. The biggest implication of the withdrawal of the bylaws for the fertilizer industry is that the price must be reviewed.

The government has ensured settlement of (unpaid) GIDC debt and future interest rate cuts, so we are absorbing recent gas rate hikes to keep urea prices at current levels. ” His name. Ghiyas Paracha, representative of the entire CNG association in Pakistan, was completely disappointed by PM's decision to withdraw the decree. “I think that governments and the business community should try to resolve 'technical disputes' through dialogue instead of passing all matters to court.

The GIDC Ordinance provided the opportunity to resolve unresolved issues at once. I urge both governments and businessmen to sit still at the table and try to solve the problem in court. I do not deny that I am interested in still paying debts at discount rates offered by many (GIDC default) governments.

But I also know that most of them believe that sooner or later they will be rescued by the courts because GIDC's imposition is illegal and unconstitutional. It was also not used for gas infrastructure construction and cross-border pipeline construction. I'm sure people who paid GIDC partially or fully in the past will get their money back.
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