The government has decided to seek guidance from the Supreme Court on Rs 417 billion Gas Infrastructure Development Cess (GIDC) with a request to fix the case for an early hearing, saying it has not surrendered its authority. Addressing a press conference flanked by Minister for Power Omar Ayub, Minister for Planning Khusro Bakhtyar, Minister for Economic Affairs Division Hammad Azhar, Advisor to Prime Minister on Commerce Abdul Razak Dawood, and Special Assistant on Energy Nadeem Babar, adviser on finance Dr Hafeez Shaikh said the government has decided to withdraw the Ordinance and directed the attorney general to request the court to fix the case for an early hearing.
As per the Prime Minister's directive, the attorney general would take the case to Supreme Court and would request it to fix the case for an early hearing. The economic situation was very bad when the present government came into power with the agenda to improve the situation to provide relief to the general public. Adviser on Finance Dr Abdul Hafeez Shaikh said tax exemption and relief was provided to the industries to increase exports and GDP growth.
He said the government signed an agreement with the IMF to implement discipline and results of measures taken have started showing results in the form of increase in exports, decrease in imports and reduction in current account deficit.
The adviser further stated as the rupee against the dollar has entered in a comfortable zone and at the same time prices of commodities in the international market are sliding, the government decided to provide relief to people by lowering oil prices.
He said that ECNEC has also taken a big decision and approved Rs 579 billion projects, which included Rs 200 billion projects designed to improve productivity of agriculture sector. All the indicators suggest that agricultural productivity would be more than expected, and if things go as per projection, projected GDP growth of 2.4 percent would surpass the target easily. The government also decided to issue refunds to export sector by mid (date 16) of every month.
Replying to a question, the advisor said that government expects Rs 800 billion non-tax revenue this fiscal year with Rs 200 billion from cellular companies, Rs 300 billion surplus profit of the State Bank of Pakistan (SBP) and Rs 300 billion from the sale of two RLNG plants. Shaikh said that although there is some confusion the matter pending in the court, cellular companies Telenor and Jaaz paid Rs 70 billion for licence renewal. He said that inflows from other companies would also come and the amount would increase to Rs 200 billion by the end of fiscal year.
The adviser said that a bond would be issued in a few weeks and the government also decided to pay sales tax refunds from 2015 onward to all those whose income tax refund is below Rs 100,000 while above those would also be issued refunds from the next month.
Replying to a question, he said the Finance Ministry's statements become government policy and it does not matter how many statements are made by ministers on a single issue.