News
Tuesday, May 13, 2008
Dar warns of action against exchange rates speculators
* Finance minister says foreign reserves can exceed $13bn
ISLAMABAD: Foreign currency dealers should avoid speculative activities and stop treating the economy and the country like playthings, Finance Minister Muhammad Ishaq Dar said on Monday. “They [the speculators] should stay away from these anti-state activities, otherwise the government will take stern action against them,” APP quoted him as telling a pre-budget seminar at the National Library Auditorium. The seminar was organised by the Federal Board of Revenue in collaboration with the Federation of the Pakistan Chamber of Commerce and Industry. Foreign exchange: Dar said the country’s foreign exchange reserves would exceed $13 billion by the end of June 2008. He said the growth target for the year had been revised down from 7.2 percent to 6 percent. He also said that the fiscal year was expected to end with an average inflation of 10 percent. The minister said that the fiscal deficit for the year was targeted at 4 percent of the GDP, adding that it would have been 9.5 percent if the government had not taken necessary measures. He said reduced tax collection was responsible for the deficit. He said the 2008-09 budget would be one of “fiscal consolidation”. Achieving fiscal balance was central to a stable macroeconomic environment, which was essential for private sector development, he added. He said the government would try to broaden the tax base. The minister urged the rich to pay taxes commensurate with their income to help the poor. sajid chaudhry/app
Courtesy Daily Times