Media reports of massive financial gap in fiscal framework false, claims Ministry of Finance

ISLAMABAD: The Finance Ministry has dispelled the impression created in a section of the media which claimed that the government will face a gap of up to one trillion rupees in the current year fiscal framework saying that is not based on facts.

A statement issued by the Finance Ministry says that the 2018-19 Fiscal outcomes were due to concerns over a slowdown in growth due to three major factors including Monetary and Exchange rate corrections, need for protection of citizens from rising oil prices and expanding social safety nets and escalation on border with India, Radio Pakistan reported.

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The statement further said that reforms agenda being pursued by the government with the support of IMF Extended Fund Facility during the first quarter of the current fiscal year is so far very encouraging with a strong indication that all the targets will be met.

Earlier in the day, State Bank of Pakistan (SBP) Governor Dr Reza Baqir says stabilising the national economy is the government’s priority.

Talking to members of the business community at the Lahore office of Federation of Pakistan Chambers of Commerce & Industry (FPCCI), he said exports have trended upward by 10 to 20 per cent.

Dr Baqir stressed that the private sector’s growth is vital for stability and prosperity in the country and that businesses will not grow without resolving the issues facing the sector.

He said the government wants to see the private sector expand so that new employment opportunities are generated.

The SBP governor emphasised the need for the sector to operate as per rules and regulations.

He also stressed the need for ensuring market competitiveness saying there will be no progress without it.