ISLAMABAD, March 29: It is because of the wrong policies of the previous government that several major budgetary targets will remain unmet during the current financial year, says Ishaq Dar who is likely to be inducted into the cabinet as a finance minister soon.

“The budget for 2007-08 warrants special measures and a new strategy to remove various economic distortions that were created by former rulers,” he said here on Saturday.

He said he had earlier chaired a special meeting held on the orders of the prime minister to evaluate the state of the economy and propose short- and long-term measures to rebuild it.

He said the trade deficit had increased to more than $12.5 billion in the first eight months of the financial year. Similarly, he said, the fiscal deficit target that was set at four per cent of the GDP could not be met. Food inflation, he said, had increased continuously and needed to be brought down immediately.

Mr Dar said the incoming government would be inheriting a ruined economy and it would take time to set things right.

He said that he had informed the prime minister about various measures needed to be taken urgently for improving the state of the economy.

“I have started consulting the officials concerned to firm up a new economic policy to be pursued by the new government during the next five years,” Mr Dar remarked. Mr Dar said that one of the toughest challenges the new government faced pertained to the hardships of the common man. “I am glad that the prime minister has announced a relief package for farmers and the poor on my recommendations.”

He said it would not be an easy task for the new government to deliver under the circumstances obtaining in the country. However, he said, he would seek the support of all major political parties so that the government might come up to the expectations of the people.

Mr Dar said that with the announcement of the reforms package by the premier on Saturday, it was now vital for the government to implement the same in both letter and spirit.

He said that the new government would have to carve out its policies in a very sensible way. “But we need to look after our people immediately and we would provide them certain relief,” he said.