TBT DESK: The upcoming national budget will not be based on large-scale borrowing from banks or money printing, Finance Adviser Dr Salehuddin Ahmed said on Tuesday.
"We will implement the budget in a fairly realistic manner. We will not design it with a huge gap. We won't go forward with massive deficit financing for mega projects by borrowing heavily or printing money. Of course, there will be some deficit, but we plan to negotiate project-related support with the IMF and the World Bank," Dr Ahmed said.
Speaking to journalists following a meeting of the Advisory Committee on Government Procurement at the Cabinet Division of the Secretariat, he stressed a more restrained fiscal approach.
When asked if the forthcoming budget would be smaller than the previous one, he responded, "That will be clear in due time."
Procurement and Project Approvals
Addressing procurement-related issues, Dr Ahmed noted a slight shortfall in edible oil and confirmed discussions about importing rice bran oil, and mentioned that most procurement proposals were from the Ministry of Water Resources.
"Our riverbanks have eroded significantly, so we've approved six projects for river protection. If we preserve our rivers, it will prevent roads from being damaged during the monsoon season," the adviser said.
Additional projects were also approved concerning food storage and liquefied natural gas (LNG) imports.
NBR Ordinance Safeguards All Interests
Commenting on the newly introduced ordinance involving the National Board of Revenue (NBR), Dr Ahmed claimed it upholds everyone's interests.
Customs officials had raised concerns, claiming their views were overlooked in drafting the ordinance.
In response, Dr Ahmed said, "We don't want to comment on that. Let them say what they will. But I encourage you to read the ordinance thoroughly …you'll see their interests have been protected. There's no need for concern."
He elaborated that in line with international practice, policy and implementation functions should remain separate. "Policy formulation requires professionals with a strong grasp of economic statistics and GDP. The NBR's role is implementation. If the same body both creates and enforces tax policy, there could be conflicts of interest."
He went on to say, "The ordinance has been thoughtfully prepared. It's not true that there was no discussion. While we can't consult every single NBR official, discussions were held with key members and administrative personnel."
Revenue Performance Remains Stable
On the question of revenue collection, Dr Ahmed said, "Revenue has already increased by 2 per cent compared to the previous year. That's not disappointing. So I'm hopeful that it will at least match or exceed last year's figure."