Cabinet approves Budget Strategy Paper 2011-14
Asim Yasin
ISLAMABAD: The federal cabinet on Wednesday approved the Budget Strategy Paper 2011-14 and decided to bring on board different stakeholders from political parties, the Economic Advisory Council (EAC) and Revenue Advisory Council (RAC) and incorporate their views for ensuring the best utilisation of available resources.
The cabinet meeting, chaired by Prime Minister Syed Yousuf Raza Gilani, also approved, in principle, the commencement of negotiations and signing of the draft agreement on security of information between Pakistan and Nato.
Briefing journalists after the meeting, Information Minister Dr Firdous Ashiq Awan said the prime minister took the cabinet into confidence on different aspects of the Abbottabad incident and the strategy to be adopted regarding the May 13 joint in-camera session of parliament.
Dr Awan said it was not possible at this stage to share revelations made by Osama bin Laden’s wives and children. She said the prime minister had already constituted a commission to investigate the Osama incident and the report would be presented in parliament and shared with the media.
When asked about Interior Minister Rehman Malik’s statement that the government would have no objection to giving the US access to bin Laden’s family members, she said no country had thus far sought a direct access to the family. “I am not answerable for the actions of Rehman Malik. You should ask him these questions,” she said.
When asked about Rehman Malik’s visit to Saudi Arabia and Iran, the information minister refused to comment and said these questions should be put to the interior minister. “The government has not yet formulated any strategy to talk with Saudi Arabia and Iran on this particular issue,” she said.
On demands from some circles for a review in relations with the United States, Dr Firdous said the government respected the point of view of those demanding the review but a decision would not be made unless there was a consensus. She said the parties demanding a review in policy towards the United States should pass a resolution but they should be mindful that doing so could isolate Pakistan. “We should engage the US and try to develop our relations on a bilateral level, but we should also not compromise on our national interests,” she said.
Dr Awan said the opposition parties were welcome to bring forward their suggestions and all political parties should work closely to formulate a policy in the best interests of the country. “Pakistan is passing through a critical juncture and all political parties will have to join hands to steer the country out of the present crisis,” Dr Awan said.
Dr Awan said the inclusion of the PML-Q into the ruling coalition had increased the government’s strength and legislation on the Reformed General Sales Tax would be enacted now.
Briefing journalists about the decisions of the cabinet, the information minister said the prime minister gave directions to the finance team on how to adopt macro management strategies during the next budget. She said the finance minister shared with the cabinet the roadmap for sustaining economic gains and providing relief to the people despite a global recession, rising oil prices in the international market, war on terror, law and order and the post-flood situation.
Dr Awan said despite these constraints, the budget would contain new initiatives to provide relief to the people. She said the cabinet resolved that the new budget should envisage measures to ensure sustainability of healthy economic indicators, including remittances by overseas Pakistanis that are likely to cross the mark of 11 billion dollars, and foreign exchange reserves likely to touch the $17.5 billion mark. She said the cabinet expressed confidence that the country would be able to secure the borrowing needed in the next financial year.
Dr Awan said the finance minister had informed the cabinet that the budget would focus on reduction of fiscal deficit, contain local borrowing, reduce dependence on the State Bank borrowing, check inflation through tight monetary policy, and strengthen the role of Competition Commission to take effective action against cartels that artificially jack up prices of different commodities. She said the provinces would also be asked to take necessary administrative measures to ensure the stability of essential items.
Dr Awan said the cabinet gave instructions for building strategic reserves of basic commodities like ghee, sugar and wheat flour to ensure their adequate availability before the onset of Ramazan when prices tend to increase. She said the prime minister had given directions to ensure availability of adequate stocks of these items.
She said the cabinet had also resolved that it would evolve a mechanism to ensure that the impact of the price increase in the POL products in the international market was minimally transferred to the people. Dr Awan also condemned the killing of a journalist in the Peshawar blast and stressed the need to join hands against the terrorist forces. .
Source: The News
Date:5/12/2011
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