ISLAMABAD, Dec 9: A high-level meeting expressed fears here on Monday of sudden oil price increases if the United States decided to attack Iraq for allegedly hiding weapons of mass destruction.

Official sources said the meeting, presided over by Prime Minister’s Advisor on Finance, Shaukat Aziz, discussed in detail the current state of economy and was informed that the oil prices could shoot up in the country in case of a US attack on Iraq.

However, the meeting expressed satisfaction over the stocks of petroleum products and

issued necessary instructions to the officials concerned to stay fully alert to meet any eventuality.

The advisor on finance, the sources said, told the meeting that except for fears of increase in oil prices, the country was on course to achieve targets fixed for exports, imports, revenues, budget deficit and inflation, and that various economic indicators had performed well during the first five months of 2002-2003.

The meeting was also told that exports were up by 15.91 per cent in the month of November when compared with the corresponding period last year. Similarly, imports registered an accumulative increase of 13.7 per cent in November this year when seen against the same period of 2001.

The expenditure was in control and the development budget was being spent accordingly, the meeting was told.

The advisor on finance said the development budget had been increased from Rs116 billion to Rs160 billion during the last three years.

He assured that there will be no cut on the development budget as had been the case in the past and that in case of an emergency, the government would make sure to protect all core development programmes, the sources said.

The meeting was also informed that over 40 per cent of resources had been provided for social sectors to support the government’s reforms agenda that intended to improve public expenditure management in the social sector and to facilitate movement from good to effective governance.