Govt to minimize fiscal deficit during: Salman
By Saad Saud

ISLAMABAD—Federal Minister for Finance Dr. Salman Shah said that during the upcoming months the government would control and minimize the fiscal deficit which crossed the estimated percentage during the first half of the current financial year. He said that the fiscal deficit during the past six months has crossed the projected figures, however added that there are still six months with the government to overcome it.
“We will have to overview oil prices to reduce the fiscal deficit,” the finance minister told journalists after participating in a workshop on Annuity Based Public Private Partnership here on Thursday. The workshop was organized by Infrastructure Project Development Facility (IPDF), in collaboration with the Infrastructure Management Unit of the Planning Commission here on Thursday.
The minister said that the deficit would be closed at 4 per cent of the gross domestic product this year. To a question about edible price hike, the federal minister said that increase in palm oil prices from $.400 to $ 900 per ton in the international market had triggered prices of the oil in the domestic market. He said that Pakistan has been importing palm oil from Malaysia and due to its utilization in bio-diesel products, its demand was increased manifold in the international market.
“Only solution to control edible oil price is to enhance oil seeds cultivation in the country,” he remarked. He was of the view that increase in prices of maize, sugarcane and rice would benefit farmers, who thereby, would be motivated to cultivate more and more crops to cater to domestic needs as well as export the commodities. He said that government has devised a comprehensive strategy to provide commodities of basic need to the people below poverty line on concessional prices. To a question about Competition Commission of Pakistan, the minister said that its has been empowered to encourage positive business competition in the country so that consumers are benefitted. Earlier, speaking at the workshop, the Federal Minister for Finance, Dr. Salman Shah stressed the need for carrying out infrastructure development projects on Public-Private Partnership (PPP) basis to accelerate economic development in the country. He said that the PPP has been very successful in various countries of the world adding that entire road network of Korea and public sector infrastructures in Japan have been developed through this partnership.
Main purpose of the workshop was organized to give the senior Federal and Provincial Government officials an introduction and broad based overview of Public Private Partnerships based on Annuity (Unitary Charge based) models. Senior officials from the Ministry of Finance, the Planning Commission and the Provincial Governments also attended the workshop. Lead Infrastructure Specialist of the World Bank, Mr. Clive Harris, President of Americas, Castalia, Mr. Alfonso Guzman, and Barrister Ejaz Ishaq Khan from AQLAAL Associates (Legal Consultant IPDF) gave detailed presentations on international experience of annuity based Public Private Partnerships and the Standardized Public Private Partnership Contractual Provisions.