Ramsha Jahangir
PM Khan’s economic team led by Adviser on Finance Dr Hafeez Shaikh — currently visiting Washington to attend the annual meetings of International Monetary Fund/World Bank-2019 — held a series of meetings with heads of various global financial institutions and business leaders to apprise them of the overall state of economy in Pakistan.
The focus of these meetings, according to an official statement, is to focus on government’s measures to curtail the twin deficits and revive various sectors of the economy through institutional reforms and collaboration with regional and international investment partners.
State Bank Governor Dr Reza Baqir and Finance Secretary Naveed Kamran held an extensive meeting with Asian Development Bank (ADB) president Takehiko Nakao and exchanged views with him on the ongoing ADB-funded projects in Pakistan as well as planned portfolio.
The finance adviser apprised the ADB president about the steps taken by the government for curtailing the current and capital account deficits effectively. In his remarks, ADB President Nakao said that ADB was an important financial partner of Pakistan and acknowledged the current structural reforms undertaken towards economic stabilisation in Pakistan.
Dr Shaikh also met World Bank’s South Asian Region (SAR) Vice President Hartwig Schafer and his team. The meeting reviewed WB’s portfolio in Pakistan and exchanged views on further steps to strengthen cooperation between Pakistan and the Bank.
Later, the finance adviser along with a delegation met IMF’s Middle East and Central Asia Department (MCD) Director Jihad Azour. They discussed the implementation of the ongoing IMF programme. The IMF director appreciated the progress Pakistan made towards economic stabilisation as well as government commitment to the reform process.
Essential commodities
Meanwhile, Special Assistant to the PM on Information Dr Firdous Ashiq Awan told the media that the Prime Minister had directed the federal ministries and provincial governments to take measures to bring down the prices of wheat, sugar, cooking oil, fruit and vegetables to provide relief to public.
She said the direction came from the premier during the three-hour meeting with the chief ministers of Punjab and Khyber Pakhtunkhwa, chief secretaries, ministers of food, agriculture, statistics, commerce and industry and cane commissioners. Mr Khan asked them to adopt a comprehensive strategy on ways to reduce prices of essential commodities, she added.
Dr Awan said the Sindh province had failed to ensure timely procurement of wheat flour, which resulted in depletion of stock and rise in its prices. To control the situation, PM Khan asked Pakistan Agricultural Services and Storage Corporation (PASSCO) to release 100,000 million tonnes of wheat for Sindh to fill the gap in supply and demand. She said the PM also directed the Economic Coordination Committee to come up with a comprehensive strategy and recommendations within three days on release of stock of wheat and cut in prices.
Besides, she hinted at the possibility of importing wheat in case of lower stock of the commodity to keep the prices under stable.
Extending support to farmers, the adviser said sugar cane farmers received payment as per support price of Rs180 per 40 kilograms. The prime minister, according to her, showed displeasure over the rise in sugar prices and asked for taking action against profiteers and hoarders.
Mr Khan suggested to the Punjab and KP chief ministers to establish farmers’ markets to bring an end to the role of middlemen, she told the media. He also directed the Federal Board of Revenue to rationalise regulatory duty on cooking oil, she added. The adviser linked the price hike of tomatoes and onions with the blockage of imports from India and said new crops in Pakistan would improve the situation.
Published in Dawn, October 20th, 2019