ISLAMABAD: Finance Minister Ishaq Dar on Thursday said that fiscal sustainability cannot be achieved without sound fiscal and financial management.

Addressing a workshop on Strengthening Sub-National Fiscal Management, jointly organised by the Ministry of Finance and World Bank Group, the minister said better economic management was the top priority of government.

He said that management of sub-national finances is an important subject with which the federal and provincial governments have to deal.

“The government is fully aware of the fact that fiscal consolidation and prudent debt management are vitally important for a better economic future and for this we have articulated a Medium-Term Budget Strategy in which we will aim to reduce fiscal deficit to around 4 per cent of GDP in the next three years. This will result in reduction of our public debts to less than 60pc of the GDP,” he said.

“This Conference comes at an opportune time when the 7th National Finance Commission (NFC) Award is coming to a close next fiscal year and preparations for the next NFC award is due to begin. I shall look forward to the recommendations of this conference,” he added.

Speaking on the occasion, Senior Economist at World Bank, Dr Hamid Mukhtar said that according to Article 167 of the Constitution, Sub-National Fiscal management is a constitutional requirement.

After the 18th Amendment and the 7th NFC Award, when the provinces have more fiscal autonomy and greater powers to make allocations, employing funds in important development projects is the biggest challenge, he added.

Acting Country Head of World Bank, Paul Welton said that it is essential to manage government’s financial operations.

“The debt limitation act has actually increased government’s responsibilities because it has to stay in the constitutional limits of public debt ratio along with providing resources for key development operations,” he opined.

Li Zhengmao, Executive Vice President, China Mobile Communications Corporation along with his team on Thursday called on the Finance Minister Senator Ishaq Dar and discussed promotion of telecommunication sector in Pakistan.

Zhengmao on the occasion congratulated Pakistan for holding a successful spectrum auction in a transparent manner.

He said that China Mobile will invest over one billion dollars in telecommunication infrastructure and training of its officials within a period of three years.

Reiterating his commitment to expand investment in Pakistan, Zhengmao disclosed that he plans to roll out projects in e-education and e-health.

He said a framework agreement for future investment and R&D projects with the Government of Pakistan, will be formally signed for further commitments.

Minister of State for IT, Ms. Anusha Rehman, who was also present in the meeting, called for production of mobile sets in Pakistan which will help the local industry in technology development.