Disparate figures of PSDP presented to Parliament, IMF: Pasha

Former Advisor to Prime Minister on Finance Dr Hafeez Pasha stated the government has presented one figure of Public Sector Development spending to parliament and another to the International Monetary Fund (IMF).
Dr Pasha clarified that the government informed the National Assembly in the budget document that PSDP utilisation for 2015-16 would be Rs 1390 billion and informed the IMF that PSDP spending would be Rs 1040 billion. This reflects a sudden and overnight slash of Rs 340 billion in the PSDP, which, he stated, would impact on development and China Pakistan Economic Corridor (CPEC). This kind of misreporting must not happen with the government giving one figure to parliament and another somewhere else. If the budget document was used for eleventh review the government should stick to Rs 1390 billion PSDP, Pasha added.
Speaking as a guest in 'Paisa Bolta Hai' on Aaj News with Anjum Ibrahim, Dr Hafeez Pasha stated that the government has projected 4.4 per cent fiscal deficit for last fiscal year in the revised estimates on the basis that Rs 170 billion Coalition Support Fund (CSF) would materialise while the IMF estimated Rs100 billion under CSF for balance of payment. The difference of Rs 70 billion, was unnoticed by the IMF, and would lead to higher fiscal deficit for last fiscal year. Additionally, Dr Pasha added, the government has projected Rs 170 billion inflows on account of CSF for the current year as well and if these fail to materialize the current account and fiscal deficits would rise by higher than budgeted.
Dr Pasha stated that there is no clear strategy to reduce the circular debt which the government and IMF admit has reached to the level of Rs 650 billion. NEPRA has released its report on industry for 2014-15, which indicates billing arrears for the year at Rs 130 billion, which is massive, 11 per cent of the total billing.
Hafeez Pasha said that 4.7 percent GDP growth figure is highly doubtful and questioned how the IMF revised its own estimate of 4.5 percent for last fiscal year upward when key demand variables, notably investment and exports growth, that led to this projection failed to materialize.