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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: BubbaFred who wrote (41410)	11/2/2001 2:17:08 PM
From: BubbaFred	Read Replies (1) \| Respond to of 50167

Another reality check posting - Do these budget and fiscal responsibility issues sound familiar? JHANG: Jhang council's surplus budget dawn.com By Our Correspondent JHANG, Nov 1: Jhang district council approved a tax-free budget of Rs741.5 million for the year 2001-2002. The budget was announced when the session of the house was convened for the second time. Earlier on Tuesday, the session was postponed following a rift between Jhang SSP and Naib Nazim Syed Asad Hayat, who was serving as acting district Nazim. The police reportedly refused to carry out his orders of maintaining peace in the house. The session was resumed the next day on return of district Nazim Sahibzada Sultan Hameed. The Nazim sought provincial government's help for the immediate transfer of the SSP and succeeded in convincing the members to resume the proceedings. However, members of like-minded group (opposition) boycotted the session. In his speech, the Nazim told the house that despite scarcity of resources, the government had presented a tax-free and surplus budget. He said the budget of Rs741.5 million did not include the salaries of district government employees who were to be paid by the Punjab government. An income of Rs263.3 million had been allocated for district council fund including Rs175.7 million for development and Rs85.2 million for non-development expenditures. He said the budget showed a net saving of Rs2.6 million. A sum of Rs410 million had been allocated for development schemes in the district out of which Rs230 million was to be contributed by the Punjab government while Rs170 million had been earmarked from the council fund. The Nazim maintained Rs25 million had been allocated for the construction of roads, Rs70 million for ongoing schemes, Rs10 million for the projects for women, Rs3 million for minorities and Rs40 million for development schemes recommended by citizen board. He continued Rs5 million would be spent on Gojra underpass, Rs1.5 million on computer literacy rate, Rs10 million on sports complex, Rs1.5 million on the renovation of district council hall, Rs1 million on promotion of sports and culture and Rs7.5 million for discretionary fund of district Nazim and members of the district council. Similarly, Rs700,000 had been allocated for institutions of district 'Mohtasib' and public safety commission, Rs100,000 for the press club, Rs200,000 for the rehabilitation of the disabled and Rs500,000 for encouragement of government servants. The break up showed Rs155.2 million for the Khushal Pakistan Programme, Rs31 million for the Social Action Programme and Rs40 million for development of community centre. Around 62 schemes of new roads, 16 of power supply and 30 of sewerage would be completed under the Khushal Pakistan Programme within next year while nine schemes would be completed under the social action board, the Nazim concluded. ---------------------------------------------- Ishrat outlines multi-pronged strategy dawn.com By Our Staff Reporter KARACHI, Nov 1: The State Bank Governor Dr Ishrat Hussain outlined on Thursday a multi-pronged strategy to tackle the current situation arising out of the September 11 incident in the US. Calling this strategy a "sustainable and long lasting solution" the SBP Governor informed a gathering of businessmen that it aims at reducing the country's debt burden, greater market access for exports, seeking concessional term loans from international financial institutions, passing on incremental expenditure resulting from influx of Afghan refugees to the US-led coalition and lastly the unlimited business opportunities for Pakistan when reconstruction phase of Afghanistan begins on conclusion of the war. The SBP Governor was the guest at a gathering of the Federation of Pakistan Chambers of Commerce and Industry on Thursday where he urged that it was the responsibility of both the government and the private sector to work together to help the country out from the present crisis. He informed the businessmen of the initiatives taken by the government to reduce the country's debt burden. He referred to the negotiations of Finance Minister Shaukat Aziz with the leaders of Japan, EU and many other countries. "EU has accepted our proposition to provide increased access to Pakistani textiles," he recalled and expressed the hope that Pakistan's export to EU would surge by 30 per cent from next January. Similar arrangements for Pakistan's exports, he said, were being worked out with the US where Commerce Minister Abdul Razak Dawood held detailed negotiations with the American leaders on this issue. These negotiations continued in Pakistan when US Under Secretary of State Alan Larson came here. Dr Hussain was confident that the losses sustained by the Pakistan economy after September 11 would adequately be compensated by the initiatives being taken by the government. He expressed the hope that the reconstruction phase of Afghanistan on conclusion of the present war would open up unlimited business opportunities for Pakistan. "History will not repeat this time," he answered to a remark of a businessman, who reminded him that Americans abandoned Pakistan and Afghanistan in 1989 after the exit of Soviet Union. "Our economy will get a kick-start," the State Bank Governor hoped and informing the businessmen that the entire government machinery was working overtime to ensure that national economy is put back into gear. "Difficult to predict," quipped Dr Hussain when asked to quantify the expected gains from all the efforts being made and promises of assistance from the foreign countries. Nonetheless, he was confident that right moves are being made at the right time by the right people. "There is all the reasons to be optimist," he said. The SBP Governor said that the government was fully conscious of the difficulties and hardships of the businessmen and taking all steps to lessen the effects. Responding to a comment on appreciation of the rupee value against the US dollar, he said that it had some positive impact too. He said the flow of remittances through banking channel had increased. The banks, he said, had been directed to accelerate the mobilization of remittances by widening the distribution channel and simplifying the procedures. He assured the businessmen that steps are being taken to set in place a stable exchange rate system. Responding to a question the SBP Governor said that production cost of value-added textile goods had been reduced considerably which had led to higher profitability. Answering another question he said the Export Promotion Bureau was setting up a special cell to collect details of all the cancelled export orders. Dr Hussain said that foreign exchange reserves of the country had swelled to 3.6 billion dollars and Pakistan's credit rating had also been improved. Another significant development is the reduction in petroleum prices with all possibilities of a further fall in the future. The benefit of this fall in petroleum prices will go to the consumers. It may also lead to reduction in prices of essential items. Regarding rate of interest on export refinance the Governor reminded the businessmen of the formula worked out for this purpose. The rate of export refinance, he said, would be 1.5 per cent plus rate of treasury bills. He advised the exporters to avail the export refinance facility in dollars. For this purpose he said the SBP would organize seminars. He informed the businessmen that Rs12 billion would be refunded as duty drawback to the exporters before end of December next. A press release of the FPCCI quotes the SBP Governor as saying that there would be no reduction in duty drawback for the next three months. He said the government attached great importance to the revival of sick industrial units. Earlier, FPCCI President Iftikhar Ali Malik in his welcome address said that country was still confronted with colossal problems even many developed countries had announced relief packages and pledged assistance. He expressed concern on volatility of rupee-dollar exchange value and urged the SBP to infuse some stability in rupee-dollar parity. The FPCCI chief appreciated the decision of the SBP to reduce the rate of export refinance from 13 per cent to 12 per cent but pleaded that a rate of 8 per cent is more appropriate. Iftikhar Malik said that massive retrenchments in banks had not helped in containing expenditure as the spread between depositors rate of return and those of lender remain unchanged. He made a detailed presentation on the issue of revival of sick industrial units, which despite all announcements of the government continue to remain idle and closed for want of working capital from the banks. FPCCI Vice-President Haroon Rashid said that the government should take up the issue of loans write-off with the US and other countries.