Loan taken from IMF to retire previous debts: Pervaiz Rashid

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ISLAMABAD: Federal Minister for Information and Broadcasting Pervaiz Rashid Thursday said the government was left with no choice but to enter a deal with the IMF to retire the debt accumulated over the last many years.

The minister, in a statement, said,"We inherited an economy which was in a shambles and the tough decision has to be taken in the national interest. We have taken this step to create fiscal space and strengthen the economy."

He categorically stated that the loan from the International Monetary Fund (IMF) had been taken to retire the previous debts. He dispelled the impression that the government would utilize the loan to overcome its budget deficit.

He said the government's policy to improve the economy was based on three basic principles i.e. strictly following the principle of austerity in expenditure, undertaking sale of loss-making state owned enterprises in avoid stress on the national exchequer and broadening the tax base to generate revenue.

The Information Minister further said that while entering the deal, the government did not blindly accept the IMF conditions, including raise in power tariff and national interest was accorded priority over all other considerations. "We did not opt for seeking financial assistance from different countries; rather we opted for a loan which we shall repay," he added.

Courtesy: BR

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