ISLAMABAD: Finance Minister Ishaq Dar said that the government will not seek financial assistance from international financial institutions and other development partner countries .to offset expenditures being incurred on Operation Zarb-e-Azb and rehabilitation of internally displaced persons (IDPs).
The government, however, has apprised them of the troubles Pakistan was passing through. “However, in the wake of increasing financial requirement to implement the National Action Plan against terrorism and rehabilitation cost of Internally Displaced Persons, the budget deficit will be adversely affected and will definitely go beyond the target of 4.9% of the GDP in the current financial year,” said Finance Minister Ishaq Dar while addressing a press conference on Monday.
He pointed out that the IDPs return and rehabilitation would cost Rs75 billion while Rs35 billion would be required to raise Counter Terrorism Force. He said over Rs30 billion had been released for Operation Zarb-e-Azb so far.
Dar said that during the first six months of the current fiscal year, the budget deficit remained well within the ceiling and was recorded at Rs696 billion or 2.4% of the GDP. He, however, said this trend may not continue in the coming months and the government has adopted a multi-pronged policy, including engaging the donors again, and is at the same time trying to create space within the budget and approaching friendly countries to meet the additional requirements of military operation and the IDPs. Pakistan was representing its case in a graceful and respectable manner, he added. “However, Pakistan will not beg from other countries for financial assistance and will represent its case in a graceful and respectable manner,” said Dar while pointing out to the outcome of the recent donors conference where donors did not pledge any financial assistance for the IDPs. In the recent donors’ moot, the US is said to have refused to provide funding for the displaced persons.
To a question about the relations with the US, Dar said Pakistan enjoys cordial relations with both US and China. He said the West should be satisfied with the launch of a military operation in North Waziristan, as there were no more sanctuaries and safe heavens left there.
The minister argued that the war against terror was basically the war of the whole world though it is also the war of Pakistan. “The success in the war against terrorism will ensure peace and tranquility in the whole world, particularly in the US, and the whole of Europe.”
Dar stated that the government would not let the IDPs suffer for the sake of meeting the budget deficit target. He said despite chances of missing the budget deficit target, the government will not renegotiate the target with the International Monetary Fund in the Sixth Review, which will be held by the end of this month. To a question regarding expectations from Secretary of State John Kerry’s visit, Dar said Pakistan expects from John Kerry to acknowledge the sacrifices that the country rendered while fighting the global war on terrorism. He said it was very unfortunate that whenever there was ahigh-level US visit in the region, New Delhi starts creating problems at the international borders and the Line of Control.
Dar said the United States had not backtracked from its commitment to give $532 million to Pakistan. But he maintained that the US Congress had not given final approval. Dar also said that the flash floods and Operation Zarb-e-Azb may affect the economic growth and the current year’s growth rate was expected to remain close to 5.1% target.
He said it was for the first time that Pakistan has successfully completed the five reviews of any IMF programme and achieved targets of the Sixth Review that will help its successful implementation.
