Islamabad (April 17, 2018): Prime Minister Shahid Khaqan Abbasi has said that sustained income and revenue streams will benefit the country instead of obtaining loans.
He said this while chairing a meeting of the federal cabinet in Islamabad on Tuesday.
Finance Division presented the Budget Strategy Paper for Financial Years 2018-19 to 2020-21 and briefed about the macro-economic indicators of current FY 2017-18.
Secretary Finance briefed that the Budget Strategy for FY 2018-19 to 2020-21 is based on four broad targets including sustained growth momentum, ensuring fiscal consolidation, managing balance of payments and ensuring debt sustainability.It was informed that the recently announced Economic Reforms Package, including lowering tax rates, widening tax base, real estate reforms, local amnesty and tightening of foreign exchange regime, will help increase revenues and reduce deficit.
The Budget Strategy Paper was discussed at length by the Cabinet and several Cabinet members provided useful suggestions for incorporation in the upcoming budget proposals.
The Cabinet approved Budget Strategy Paper for FY 2018-19 to 2020-21.
Earlier, Prime Minister presided Economic Coordination Committee (ECC) of the Cabinet, which accorded approval to Pakistan State Oil (PSO) for import of furnace oil to be used by the power sector.The meeting of ECC was held in Islamabad on Tuesday under the chairmanship of Prime Minister Shahid Khaqan Abbasi.
The decision has been made to cater for maintaining adequate fuel stock in the coming months.
Transportation tariff for 427 km long Machike – Taru Jabba Oil Pipeline project was also approved by the ECC. Tariff will be ratified by OGRA after due process. The project will be completed in three sections and envisages environment friendly and safe movement of fuel.The project will also provide for additional storage of fuel and enable supply to major distribution centers in central and northern Punjab and Khyber Pakhtunkhwa. The ECC further directed that all future pipeline projects will require approval of the cabinet.
In order to ensure stable and reliable power supply through National Grid System and to enhance NTDC system capacity, the ECC accorded approval for issuance of Government of Pakistan Sovereign Guarantee against financing facility of 9.846 billion rupees from local banks for NTDC projects.