• SIFC takes long-term policy decisions in six-hour meeting
• Caretaker govt says committed to global agreements amid economic challenges
• Shamshad highlights foreign exchange management as top priority, expects $6bn cumulative inflows this fiscal
• New policy move to connect industries to power stations
ISLAMABAD: Still reeling from nationwide protests against inflated electricity bills of peak summers, the caretaker government on Friday said that increasing gas rates “across the board” ahead of winter was inevitable to contain the gas-sector circular debt growing at the rate of Rs350 billion per year. The government said it also intends to revitalise an economy that’s seen months of decline due to strict import regulations.
At a news conference, key ministers of the interim government also emphasised long-term policy decisions, vowing to uphold all international agreements while preventing their misuse against national interests.
They said the industries would be directly linked to power stations through wheeling charges, a move that may further add to the low recoveries and circular debt of the power distribution companies (Discos).
This was the crux of the marathon six-hour first session of the two-day proceedings of the civil-military Special Investment Facilitation Council (SIFC), which also decided to open up imports across the board to facilitate exports, job creation and economic activities affected by months of import restrictions amid low foreign exchange reserves.
Caretaker Prime Minister Anwaarul Haq Kakar presided over the meeting, also attended by the army chief. The SIFC will continue its second round on Saturday (today) to reach decisions and formal announcements, according to a news conference jointly attended by four cabinet ministers — for finance, commerce, power, and information.
In response to questions about the strength of the economy to withstand foreign exchange requirements of a possible import splurge, Finance Minister Dr Shamshad Akhtar said fresh inflows from multilaterals were expected to be around $6bn during the year on the basis of ongoing discussions with the multilateral agencies like the World Bank, Asian Development Bank and International Monetary Fund and besides the anticipated rollover of deposits from friendly countries on maturity. “The situation is reasonably okay for now,” she said.
Information Minister Murtaza Solangi said the SIFC focused on three key sectors of potential investments, including information technology, mining and agriculture, but also discussed measures to contain government expenditures and circular debt, implementation of decisions of the previous government for privatisation, reforms in the Federal Board of Revenue, removal of roadblocks to foreign direct investment and improvement of performance of loss-making state-owned entities and their privatisation.