Salehuddin Assures Budget Will Proceed Without Bank Borrowing
Finance Adviser Dr Salehuddin Ahmed has announced that the Annual Development Programme (ADP) in the upcoming fiscal year's budget will be extremely realistic. He assured that the budget will not be implemented by borrowing from banks or printing money. “We will not undertake large mega projects through loans,” he said.
He made these remarks while speaking to reporters on Tuesday (May 13) after a meeting of the Advisory Council Committee on Government Purchase held at the Secretariat. The meeting was presided over by the Finance Adviser.
In response to a question from journalists on whether the division of the National Board of Revenue (NBR) would impact revenue collection, the Finance Adviser said, “There will be no impact on revenue collection. So far, revenue collection is already 2% higher than last year. It's not disappointing — in fact, I am hopeful. At the very least, it will not fall short compared to last year.”
He added, “Overall, we will implement the budget without a significant deficit. Projects and the ADP will be carried out in a very realistic manner. We will not take on large mega projects by borrowing or increasing the deficit. We will not implement the budget by borrowing from banks or printing money. Of course, there will be some deficit, and to cover that, I am negotiating. We are in discussions with the International Monetary Fund (IMF) and the World Bank regarding project financing, and those talks are progressing successfully.”
Regarding the ordinance that dissolved the NBR after 53 years, journalists pointed out that many customs and tax cadre officials had been protesting for a long time and asked if their opinions had been ignored in the decision. In response, the Finance Adviser said, “Please read the ordinance carefully — their interests have been fully protected. The policy division will be a separate and very small unit. So, there is no reason for the NBR to worry. The NBR will continue to function as it is, with some updated terms of reference.”
He explained, “It is international practice to have separate policy and implementation divisions. In every country, these are kept separate. That’s because policy divisions require professionals with expertise in economics, statistics, and an understanding of GDP, among other things. The NBR will focus on implementation. If the NBR does both — policy and implementation — that creates a conflict. One body making policies and also collecting revenue is not ideal.”
“This decision has been made with careful consideration,” he emphasised. “It’s not true that we didn’t consult with them. Of course, consultations were held — maybe not with every single employee of the NBR, but definitely with its members. We also consulted some members of the administration who had concerns.”
