Sunday, 11 September, 2022 I 14 Safar, 1444 I Rs 15.00 I Vol XIII No 73 I 12 Pages I Islamabad Edition
UN chief to take Up issUe of ‘Debt swaps’ with iMf, wb for pakistaN
KARACHI
s
staff report
ECRETARY General of the United Nations (UN) António Guterres has said that UN will strongly advocate for “debt swaps”, with IMF and World Bank through which developing countries like Pakistan, instead of paying a debt to foreign creditors, will be able to use that money to invest in climate resilience, investments in sustainable infrastructure, and green transition of their economies. He said, “We will go on strongly advocating for these solutions in the meetings with IMF and World Bank, which will take place soon. And, also in G-20 meeting.” He stated this while talking to media persons on his arrival at old airport Karachi here
on Saturday. PPP chairman and Foreign Minister Bilawal Bhutto Zardari, Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal, and Sindh Chief Minister Syed Murad Ali Shah among others were also present on the occasion. UN chief said that he had been strongly advocating for, what they could call ‘debt swaps’ and that was exactly Pakistan needed. “Instead of paying the debts being able to invest that money in what the country requires,” he said. António Guterres called upon the international community to scale up their support for flood-hit Pakistan. He said, “We see here in Pakistan, the nature is striking back with devastating consequences,” adding, “I have seen many disasters in the world but I have never seen cli-
mate carnage on these scales.” “I have simply no words to describe what I have seen today,’ UN chief said, adding that he had seen from emergence workers to ordinary people, who were helping their neighbourers in this time of difficulty”. He further said that families had lost their houses, the farmers had lost their crops and their livestock. ‘The most emotional moment for me during this visit was to listen to a group of women and men they have sacrificed their possessions, there was possibility of rescue,’ he said. The UN secretary general said, “The poor people have touched me deeply. I want to pay tributes to gigantic efforts of the Pakistan authorities, civilian and military, national and regional”. Massive and urgent financial support for Pakistan was need of the hour, he said adding this is not the question of solidarity, generosity, but it is the question of justice. Pakistan is paying the price of what I have seen, which is created by others. Climate Change caused by human activities is super charging storms and catastrophes, he added. UN chief said that burning of fossil fuel was eating our planet. The G-20 countries are responsible for 80 percent of that emissions. He said that all countries with G-20 leading the way, must boost their national emission reduction targets every year until 1.5 degrees Celsius temperature limit is guaranteed. “I have been demanding very clearly that the world must seriously adopt a programme of in-depth relief for developing countries including middle-income countries like Pakistan that are on the verge of an extremely difficult financial situation.” It is completely essential to create a new mechanism, he stressed. António Guterres said that rich countries must step up adaptation finance.
CONTINUED ON PAGE 03
Gen Bajwa oversees rescue, relief activities in far-flung areas of Dadu district RAWALPINDI staff report
General Qamar Javed Bajwa, Chief of Army Staff (COAS), visited far flung areas of interior Sindh in Dadu district on Saturday. COAS spent time with flood affected people in relief & medical camps. He directed the forma-
tion for providing 5000 tents to flood affected people of Dadu and surrounding areas. COAS also interacted with troops busy in rescue & relief activities. Later, COAS was flown for aerial reconnaissance of flood affected areas of Dadu, Khairpur Nathan Shah, Johi, Mehar and Manchar Lake.
Govt fully cognizant of flood victims’ sufferings: PM LARKANA staff report
The prime minister on Saturday said the government of the Pakistan Democratic Movement (PDM) parties was “fully cognisant” of the challenges being faced by the victims of catastrophic floods as he reassured them of the federal and provincial governments’ complete support in “this hour of distress”. Talking to flood-weary residents along with António Guterres, the secretary general of the United Nations who is on a two-day visit to take stock of flood damage, Shehbaz Sharif said an amount of Rs70 billion allocated by the central government was being disbursed among flood-hit families under Benazir Income Support Programme (BISP). He told the audience that Guterres had come all along from New York to offer grief and sorrow over the death from flood waters of about 1,300 people. He observed that Sindh suffered massive losses as its crops were damaged and livestock swept away. The top UN diplomat has arrived here to express solidarity with the people of Pakistan, he added. Speaking on the occasion, Bilawal Bhutto-Zardari, the foreign minister, expressed gratitude to the prime minister and Guterres for their support and solidarity. He said it was a historic event as Guterres arrived in Larkana, adding that Islamabad, Sindh and the international community will join hands to build structures that could resist future calamities. Guterres, on the behalf of the UN, expressed solidarity to all those who suffered due to the terrible floods in Pakistan. He said: “Voice of the UN will be exactly the same as Pakistan.” He said that monsoon season had always been unpredictable. The developed nations have been contributing to air pollution, and ensuing increasing temperatures resulted in more floods and glacial melting and giving rise to catastrophic situations like being witnessed in Pakistan, he opined. Guterres said Pakistan was not responsible for the environmental pollution, but it was nevertheless suffering due to high air pollution levels across the West. He urged the developed countries to support Pakistan. He further observed that Pakistan had no resources to compensate for the deaths, and loss of crops and livestock. “Those who had created such a situation must support Pakistan as Pakistan can’t do it alone. I am not asking for generosity, but for justice,” he added. He said his message to the world would be to stop this war on nature as it would not forgive, and stop polluting the environment which was creating vital changes and contributing to the warming of the planet. Narrating his background, he said he belonged to a farming family from Portugal, and that he could realise the sufferings, and pains over the loss of property. Praying for the alleviation of flood affectees’ sufferings, the UN secretary-general said that he hoped for a miracle to set things right. Later, Guterres visited the UNESCO World Heritage archaeological site of Mohenjo-daro where he was briefed by the authorities. Talking to the media, the United Nations chief reiterated that Pakistan had no capacity to rebuild and reconstruct, and urged the global community to play its role in this regard. He said the recent floods had been the result of climate change and the country was among the top countries that had been facing the adverse impacts of such phenomenon.
No aid needed with 15pc exports, tax to GDP ratio: Miftah LAHORE staff report
Federal Minister for Finance and Revenue Miftah Ismail said on Saturday that if Pakistan boosts its rate of tax-to-GDP and exports-to-GDP up to 15 per cent, the government would not need to ask for aid from the world. Talking to business community here at Lahore Chamber of Commerce and Industry (LCCI), he said that at present, there was 9.5 per cent tax-to-GDP ratio. Pakistan’s exports were US $31 billion while imports were US $80 billion. No country could afford such a large trade deficit so we have to control unnecessary imports, he added. Miftah Ismail said that government was ensuring provision of 100 per cent facilitation to export-oriented industry with an effort to enhance the country’s overall exports. Federal Board of Revenue (FBR) Chairman Asim Ahmad, LCCI President
Mian Nauman Kabir, Senior Vice President Mian Rehman Aziz Chan and Vice President Haris Ateeq, former office-bearers and executive committee members were also present, while State Bank of Pakistan (SBP) Governor Jameel Ahmad attended meeting through Zoom. Finance Minister said that when the government came into power in April 2022, there was a serious threat of default as the foreign exchange reserves were US $10.5billion while US $36billions were required for debt repayments and other expenses so tough decision, based on ground realities, were needed to avert the default. He said that no international financial institution was lending those countries that did not have three months’ foreign exchange reserves. About the withdrawal of subsidies on petroleum products and power, he said, it was condition of IMF and was needed in order to bring Pakistan’s economy on the right track. He declared that the risk
of Pakistan’s default had evaporated due to tough decisions such as an increase in energy prices and curtailment of imports, which slashed the demand for foreign exchange. He said that at present, Rs7.5 per litre and Rs37.5 per litre taxes were imposed on diesel and petrol respectively. Miftah said that unfortunately the industry could not grow at a pace, which was required added that the production of electricity doubled from 13,000MW to 25,000MW in 2013-2018, but industrial production did not grow enough to consume this energy and increase the exports of the country. He said that per unit generation cost from Jamshoro power plant was Rs59 which reaches to Rs78 after transmitting to the consumers. Miftah said that the government had passed on just the cost of fuel and LNG to the consumers. The finance minister directed the chairman FBR and governor SBP to look
into the suggestions presented by the LCCI and create conducive environment for the businesses. He had asked
the top men to hold meetings with the LCCI representatives.
CONTINUED ON PAGE 03