This will be the last time Pakistan approaches IMF: Asad Umar

KARACHI: Finance Minister Asad Umar on Saturday spoke about Pakistan approaching the International Monetary Fund (IMF) and said this would be the last time the country seeks a bailout from the lender.

"This will be the last IMF programme," the finance minister assured while addressing an event at Pakistan Stock Exchange.

“The media is portraying the country’s economy as collapsing but that is not the case. No alarm bells are ringing," he said, but went on to add that the financing gap this year is of $12 billion.

"In the next seven to eight months, the US dollar will see a decrease of 26% to 27% against the Pakistani rupee," he said while adding that "matters are coming under control".

"The current account deficit, which earlier rose from $2.5 billion to $18 billion, has started to decrease," the finance minister added.

Umar further announced that measures were being taken to improve the stock exchange and said there is astounding growth in the stock market and efforts should continue for better results.

"Doing business in Pakistan has become very expensive...[and] the environment for investment and business needs to be improved". He added that the government will work on improving the capital market.

He also said the government's target is to increase revenue.

Stating that investment is low in the country owing to taxation and that "needs to be fixed", the finance minister continued, "The market needs to be regulated but not over-regulated."

The finance minister added, "ups and downs are common in businesses."

Asserting that one should spend within their limits, Umar said, "I have to save 210 million Pakistanis."

Later during the day, the finance minister addressed traders and said, "The Federal Board of Revenue (FBR) has requested for a task force to be formed for them."

"We are familiar with the current economic situation," he added. "The issues faced by the country and its industries cannot be solved through people's wishes," he stated.

"Petroleum products are Pakistan's biggest import...we have reduced taxes on petroleum products," he added.

Further, he upheld, "We did not increase the gas tariff for the export industry."

The finance minister also announced that the government is bringing a new system for tax refunds.