Big cabinet not sending good message: Tarin

ADVISOR to Prime Minister on Finance Shaukat Tarin has said that all-out efforts would be made for making the IMF loan taken this time fruitful, unlike the past.

Tarin said that IMF has asked for a tough budget and the government would have to stick to it. Talking to a US TV channel, Tarin said: "Pakistan possesses foreign exchange reserves of $3.5 billion, which is equivalent to its one month import bills." He said that IMF didn't impose hard conditions and the inflation rate alone was termed unrealistic.

IMF said that the budget would be very hard and the government would have to remain firm on it.

Finance advisor agreed that the constitution of a large cabinet in the backdrop of financial crisis was not sending good message to the world. However, he said that reasons exist for large cabinet and it was such an issue, which the government should take up right away.

Tarin said that unlike the past, this time, the government taking loan from IMF would make all-out efforts for its best use and he has the support of the top leadership for this purpose.

APP adds: Shaukat Tarin Tuesday expressed the hope that the country would receive first tranche of $3.5 billion from the IMF.

Talking to a private TV channel, he said, "I hope that IMF's first tranche would be between $3 to 3.5 billion."

Shaukat Tarin said $1.5 billion will also come from the IMF during the current year.

He said Asian Development Bank, World Bank, Islamic Development Bank and DFID have started releasing financial assistance to Pakistan.

To a question, he said $4 billion would come from World Bank, Asian Development Bank and Department For International Development (DFID).

About $2 billion would come from China and other measures taken by the government, he said.

The Advisor hoped that assistance from IMF and other international institutions will help strengthen country's foreign exchange reserves.

Shaukat Tarin expressed hope that financial assistance from IMF and other institutions will boost confidence of local and foreign investors.

To a question, he said reservations of the people will be removed after publishing of Pakistan's plan on International Monetary Fund website.

To a query, the Advisor said all the points included in the plan have already been announced in the budget.

It was announced in the budget that fiscal deficit will be brought down to the level of 4.3 per cent.

Shaukat Tarin said ratio of the tax to the GDP will be enhanced to 15 per cent.