August 21, 2003	Thursday	Jumadi-us-Sani 22, 1424

Please Visit our Sponsor (Ads open in separate window)

ISLAMABAD, Aug 20: The International Monetary Fund (IMF) has asked the government to stop unproductive money injections into loss-making state-owned enterprises, reduce operating costs of the power utilities and accelerate steps to reform the judiciary.

“Wapda and the KESC should lower operating costs by enhancing the integrity of procurement and strengthening oversight of bill collection,” said Henry Ghesquire, the IMF senior resident representative in Pakistan on Wednesday.

He said the government agencies should be made to pay on time for the electricity they consume.

He advised the government to curb unproductive outlays, including transfers to loss-making state enterprises, and generalised subsidies that tend to benefit politically vocal groups and not necessarily the most vulnerable.

He said the IMF highlights the importance of financial stability. Confidence in the value of the rupee is essential, albeit not sufficient, to persuade businessmen to invest while fiscal discipline will remain crucial for a further reduction in the public debt burden and sustained financial stability, he added.

The IMF representative said a rules-based system in the power sector for ensuring cost recovery of imported fuel oil and a transparent regulatory framework were key to safeguarding the financial viability of the public utility companies and persuading private investors to acquire equity in these companies.

Mr Henry said the IMF was contributing to enhancing the integrity and transparency of budgetary expenditures, including through the offices of the auditor-general and the accountant general, and would work with the central bank to strengthen its surveillance over the integrity of the financial system.

He said the IMF strongly supported the expeditious introduction of the pilot project for the Karachi Customs scheduled for March 2004 which was vital to help clear import consignments in 48 hours, apply verification methods that involve minimum cost and nuisance to importers and to reduce face-to-face contact between the tax officials and customers to the detriment of the state finances.