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Musharraf sees positive signs in economic recovery efforts

IKRAMUL HAQ

ISLAMABAD: Chief Executive General Pervez Musharraf sees positive signals in the government's economic recovery drive, aimed at reducing deb burden, budget deficit and trade deficit.

Replying to a question at a press conference here on Thursday, Gen Musharraf said that for resource mobilisation, the Central Board of Revenue was preparing a strategy for tax reform and documentation of the economy. The Army is to be used for the survey.

He said that the CBR Chairman Riaz Naqvi expects that through proper survey and documentation, an additional Rs 600 billion could be mobilised.

At present the CBR is working on a target of Rs 356 billion for the current year.

The Chief Executive said that to tackle debt retirement, the government would earmark 90 percent of the privatisation receipts, and only 10 percent for poverty reduction. There are bright prospects for privatisation, he said.

To reduce budget deficit, the government had undertaken to reduce expenditures. Nearly Rs one billion is being saved through actions in the Foreign Office; the Railways are being improved, saving another Rs one billion, and downsizing in government departments. Besides, he added, the CBR is working out a strategy to mobilise additional resources.

The trade deficit he said, is coming down through efforts to enhance exports. He was certain the country would achieve the export target of nine billion dollars, which would show an increase of 20 percent.

For economic recovery, the CE reiterated that action on agriculture, oil and gas and small and medium industries were in hand.

The survey and documentation of economy, he added, would broaden the tax net, and with improved receipts, the government would be in a position to reduce not only the tax burden on the salaried group, but also enhance government salaries. This, he said, would be his first priority, if things go well.

He emphasised that the country's sovereignty is linked with economic sovereignty.

Asked about the alarming water shortage in the country, the implication being whether the government would undertake construction of big dams, the Chief Executive said that it was unfortunate that the governments in the past did not take action for hydro power generation, but the power shortage problem is not an issue now. But he added that for irrigation, the country needs more water. We will take action after prudent considerations, he added.