Rs 20 billion public entities shares to be offered to expatriates

[Naveed Yaseen]

(a Message for Tarin: Sell these shares to your IMF)

MUSHTAQ GHUMMAN & QAMAR UZ ZAMAN
ISLAMABAD (December 17 2008): Advisor to Prime Minister on Finance Shaukat Tarin said on Tuesday that the government would sell Rs 20 billion shares of public sector entities to non-resident Pakistanis, for which an agreement has been reached with International Monetary Fund (IMF).

Talking to newsmen after addressing a seminar on global financial crisis, jointly organised by Pakistan Institute of Development Economics (PIDE) and IMF in the Planning Commission Auditorium, he said that this option (provision of Rs 20 billion) was still intact, and the government would intervene at the right moment, with the right price, and added that "what we commit, we execute". He, however, clarified that he had never made any promise to establish any market support fund for stock market brokers.

Talking about the depreciation of the rupee after removal of floor from the stock market, he expressed optimism that the rupee would appreciate, saying that it was the result of speculation in the market, which would end soon. He said that the government would be receiving more than $1.5 billion from different international financial institutions (IFIs) in February, "after which our trade deficit would come down".

When asked if he had any timeline to bring down the soaring inflation, he said that it was the government's top priority, and steps were being taken in the right direction. He said that the Sensitive Price Indicator (SPI) and Consumer Price Indicator (CPI) for November had shown declining trend compared with October. From January, a substantial declining trend in inflation would be visible, he added.

He expressed hope about further decline in oil and commodity prices in the international market, and added that this would definitely help the government in arresting inflation. He said that the government would pay special attention to value-added textile products, "because this sector is in trouble".

The Advisor said that the government was expecting surplus agriculture produce because of its farmer-friendly policies. Regarding any new tax policy for improving the tax-to-GDP ratio, he said that the government was not introducing any new policy in this respect. He said that the government would discover and address administrative gaps in this respect. Tarin said that the government would soon promulgate 'Money Laundering Act' in the country.

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