Govt Announces Plan to Sell Institutions on a Monthly Basis to Ease Financial Burden on Treasury...
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00:00The delegation of the IMF is present in Pakistan.
00:02Today, when the Cabinet had a meeting, the Prime Minister also told the Cabinet,
00:07that the various government ministries are successfully resolving the issue.
00:15Now, what are the things that are being resolved in these matters,
00:19what are the demands of the IMF that we are going to meet,
00:22Mr. Shoaib Nizami is present with us, let's know from him.
00:24Now, it is being said that some institutions have to be privatized as soon as possible.
00:30Tell us about that and the news that the money has come under stress.
00:36Look, there is a whole plan of privatization that is being discussed,
00:39and the problem is that the report that has come out,
00:42there are losses of Rs. 864 billion in SOEs,
00:45and these SOEs have not been privatized for the last 20 years.
00:50So, now the situation is a do or die situation.
00:52How many losses? Rs. 800?
00:53Rs. 864 billion in the last year.
00:55In the last year?
00:56Yes, in the last year.
00:57And in the last 10 years, these losses have been around Rs. 6 trillion.
01:01This is such a big amount, in which 3 or 4 dams are built,
01:04the entire ML-1 is built.
01:06All these losses are happening because of the efficiency issues,
01:09they are not being privatized.
01:11Now, the three discourses that are coming on the top priority,
01:14the ISCO, FESCO, and similarly the Gujranwala one,
01:18the House Building Finance Corporation is coming,
01:20the Women's Bank is coming, the PIA is coming,
01:22all these top priorities have to be done within 6 months,
01:25so that their losses can be reduced to some extent.
01:28You are saying that they have to be done within 6 months?
01:30Yes, they have to be privatized.
01:31Okay, right.
01:32Because we had asked for relief from them in the power tariff yesterday,
01:35it is related to this that when you reduce their losses,
01:39then there will be a slight decrease in the power tariff.
01:42But along with that, the capacity charges,
01:44which is our circular debt,
01:46for that, there is a risk of an increase of up to Rs. 3,
01:49and if we take a loan from the banks and reduce the circular debt,
01:54then its capacity charges will be around Rs. 2.80,
01:57and that will be in the electricity bills for 5 years.
02:00So, this will be a difficult decision.
02:02Along with the four discourses,
02:04the issues of agriculture income tax have been finalized,
02:08and today, a schedule will be announced as to when it will be implemented.
02:13Along with this…
02:14Okay, my question is that the money is in a bit of pressure right now.
02:17Some people think that this will lead to further devaluation.
02:20What is the news regarding this?
02:22No, actually, the IMF does not tell us what rate to take out.
02:25It says that whatever the market forces are,
02:27because of this, whatever rate will be made, will be made.
02:30So, apparently, the circumstances seem to be,
02:32like the Trump government is doing,
02:34and tariffs, and a panic has been created all over the world.
02:38That is why, when we saw yesterday,
02:41that in the monetary policy of the State Bank,
02:44the interest rate was maintained,
02:46the reason for this was that the international shocks are still pressurizing,
02:50and there is a risk to the government,
02:52that even if we reduce it a little,
02:54then our core inflation, which is at 8.5,
02:56may not exceed.
02:57That is why the government has maintained it,
02:59so that the demand…
03:00Ma'am, let me ask you a question.
03:02Mr. Chaudhary Ghulam,
03:03this matter of privatization,
03:06I have also been observing it for the past two decades,
03:09it is always in the view of politics.
03:12Whatever government comes into power,
03:15a political party,
03:16because the only way is that,
03:18it is not possible to waste 1 trillion rupees every year,
03:21and when 1 trillion will come out of your economy,
03:24will come out of your treasury,
03:26and there will be no benefit of it,
03:28then how can your economy be sustainable?
03:30Like, last year, 864 billion rupees,
03:33now it has been said that for 10 years,
03:35I don't know, you have wasted 10 trillion rupees.
03:37So, how will this willpower come,
03:40how will it be possible,
03:42what kind of strategy will have to be put in place,
03:44that whichever party is in power,
03:48it should be above politics,
03:51and should be laser-focused on the issues of national interest.
04:00Mr. Chaudhary.
04:02No, there is only one way for this,
04:04the rules that have been made,
04:06according to that, opt for it.
04:08Yesterday, I met a party,
04:10to buy PIA,
04:12they have been sitting here for 6 months,
04:15they have no future,
04:17now they have said,
04:18by July, we will privatize or disinvest PIA.
04:23If they take this decision,
04:25take these bitter pills,
04:27and move forward,
04:29then nothing like it,
04:31but now I don't see any will.
04:34If you have any questions for Mr. Shoaib,
04:37you can ask them too, Mr. Chaudhary.
04:41Mr. Shoaib, Mr. Nizami gives us good news,
04:44but after that, we see the ground reality,
04:47people come to behead us,
04:49that what were you,
04:51prices have gone down,
04:52everything is on fire,
04:54and you are talking to the sky.
04:56Mr. Nizami, give us some good, authentic news.
04:59I will rephrase your question,
05:02news is coming that electricity is going to be cheaper,
05:05every day there is news that
05:07electricity is going to be cheaper,
05:09how much is electricity going to be cheaper?
05:11See, we are talking about 2 rupees,
05:13and it will be in our fiscal year,
05:16but the problem is,
05:18the 605 lakh rupees tax shortfall,
05:21is hanging on the head of the people.
05:24The government is trying,
05:26like in the Supreme Court,
05:27our case, the super tax case,
05:29its hearing will be on a daily basis.
05:31How much money is stuck there?
05:33It is expected to be 3 billion rupees.
05:35And this case,
05:37it was for a year,
05:39for Operation Zarb-e-Azab,
05:41so the case is not very strong,
05:43of the government of Pakistan.
05:44But if the government wants to defend itself,
05:46because till now the situation is the same,
05:48and the influence is still there,
05:49it has not been populated properly.
05:51So cases like this,
05:53there are cases of 3.7 trillion rupees in the FBR,
05:56the FBR taxes cases,
05:58are around 37 billion rupees.
06:00If that is there,
06:01then there is hope,
06:03that the taxes cases,
06:05will not be taxed further.
06:07But,
06:08because we are going to get carbon funding,
06:10then there is a risk,
06:11that in Pakistan,
06:12the carbon levy,
06:13on petrol,
06:14on diesel,
06:15on coal-fired houses,
06:17similarly,
06:18on EV cars,
06:19the IMF has clearly said,
06:21that these are the rich people of Pakistan,
06:23you should not impose any tax on them.
06:25Similarly,
06:26you should not impose any tax on their batteries.
06:28So,
06:29the solar energy,
06:30which is to be purchased per unit,
06:32should be standardised.
06:33Yes,
06:34solar is also being said,
06:35that the rich people of Pakistan,
06:36are getting solar installed.
06:37So,
06:38in some way,
06:39in terms of carbon,
06:40they should be encouraged.
06:41But,
06:42it is also important,
06:43that the capacity charges,
06:44how will you take them.
06:45So,
06:46there is a possibility,
06:47that here too,
06:48there is some government.
06:49Ok,
06:50so now,
06:51you are going to impose taxes on 600 billion people,
06:53what is to be done?
06:54Where is it to be done?
06:55How is it to be done?
06:56Ok,
06:57so,
06:58please tell us,
06:59this sugar,
07:00what is the story behind it?
07:012 months back,
07:02they exported the wafer,
07:03there was no problem.
07:05Now,
07:06it is told,
07:07that they are importing sugar out of the market,
07:09so that it can be managed.
07:11As of now,
07:12as of today,
07:13how much are our stocks?
07:14Why is the cost,
07:15the 14th,
07:1615th week,
07:17the week,
07:18the price of sugar is increasing?
07:20Our stocks are there for 7.5 months,
07:22we have 3.5 lakh tonnes of sugar.
07:26and this is enough for seven and a half months, we can easily do it by mid-November.
07:32The Prime Minister is continuously telling them to reduce the price of sugar,
07:37but the PSMA and its people are very powerful people,
07:41they make governments, they sit in governments,
07:44so they don't want to incur any kind of loss on themselves.
07:48And they are also very helpless that they have been facing losses of Rs. 2.5 billion in sugar since two years.
07:54And this is the reality in the stock market,
07:57the four sugars that we have got are showing all kinds of losses.
08:00But the problem is that the price is being paid by the people,
08:04so this is why the government has decided, whether it will be implemented or not.
08:07But if sugar comes to Pakistan and we refine it and export it,
08:11then this will also be a good decision,
08:13but this will definitely lead to a decision that there is going to be a shortage in Pakistan,
08:18so nothing like this is going to happen.
08:20Thank you very much, Mr. Shoaib Nizami.