ISLAMABAD, June 6: Prime Minister Shaukat Aziz on Monday rejected as incorrect claims of poverty rise in Pakistan and described the new fiscal budget for 2005-06 as people-friendly, investment-friendly, farmer-friendly and business-friendly.

Addressing a news conference at his Parliament House chamber soon after the budget presentation, the prime minister defended high inflation and attributed it to multiple factors, including international oil market’s volatility “over which the government had no control”.

Replying to a question about the NFC award, he said efforts were under way to prepare a formula on the basis of which all the provinces could be satisfied after the four chief ministers reposed their confidence in the president.

He said the award will be announced after convening a meeting of the National Finance Commission. When finalized, its provisions will be adjusted in the new budget accordingly, he added.

He said that poverty alleviation and employment figures had “certainly shown” upward trend which the household survey, expected to be out soon, will endorse.

He listed substantial increase in per capita income, GDP growth rate of 8.4 per cent and keeping of debt within control as big successes of his government.

Stating that no min budget will follow, he, however, added that oil and gas prices were internationally controlled and any change in their prices during the course of the year could not be called a mini budget.

The new budget, he said, brought good news for government employees in terms of substantial increase in their pay scales, while re-fixation of minimum wage “will benefit the common labour”. Lowering of income tax slabs “will benefit the salaried class”, he added.

About the possibility of any of the proposed water reservoirs, including the Kalabagh dam, being undertaken in the new fiscal year, he said the government was ready to provide funds for any of the large water dams provided the much-needed consensus among provinces emerged.

He said: “We have had two to three committees working on the feasibility of these dams and as soon as a decision was made, we will provide funding.”

On a question about the Kishanganga and Baglihar dams, the premier said: “We have held a meeting on the Baglihar dam to chalk out a strategy for going into a preliminary meeting with World Bank experts being held in Paris while we have asked India to immediately arrange inspection of Kishanganga site to avoid a Baglihar-like situation.”

About the visit of APHC leaders to Pakistan minus radical leader Syed Ali Gilani, the prime minister said “we want to take all the Kashmiri leaders along, as we are interested in resolving the issue of Kashmir according to the wishes of Kashmiri people.

Regarding opposition’s contention that foreign exchange reserves of $13 billion were of no utility to the common man, the premier countered that they, in fact, had served as a balancing factor in exchange rate and helped in keeping the import burden under rein.

When asked about the policy of his government towards the implementation of the 7th Wage Board award for newspaper employees, he said he was cognizant of newsmen’s problems and would set up a committee to take the process forward.

He said the government had decided to provide clean drinking water, electricity and gas to every citizen for which certain provisions had been made in the budget.