However, he said the IDPs' rehabilitation would be compromised due to fiscal deficit. "We will try to close deficit near the 4.9 percent (budgetary projections)," he said adding that LSM performance was very disappointing during the first half of the current fiscal year but despite that and a setback of flash floods, efforts would be made to reach close to 5.1 percent of the GDP target projected in the budget for the current fiscal year. The Minister further stated that a shortfall in revenue will have a negative impact. However, he said that there are certain things in his mind to deal with the extraordinary expenditure. Dar said that he would not seek some sort of relaxation from the International Monetary Fund (IMF) on agreed fiscal deficit target for the current fiscal year. He added that the government has engaged donors and is exploring other options to manage the expenditure.
"Pakistan is now an International Bank for Reconstruction and Development (IBRD) country after $15 billion Foreign Exchange Reserves," he said, adding that for the first time Pakistan fifth review under IMF programme has been completed and now it is prepared for sixth review in the last week of current month. The Minister claimed that all the performance benchmarks for the review have been completed with margins and advance data for the review has been provided to the Fund. Dar said the IMF Mission Chief would visit Pakistan after the completion review in Dubai.
The Finance Minister said an additional GST has been imposed on petroleum products to generate Rs 17.5 billion to compensate for Rs 68 billion revenue shortfall due to a decline in oil prices in the international market. Dar said in the first six months of current financial year, revenue collection by FBR was Rs 1162.4 billion, which was 13 percent higher over Rs 1031.4 billion for the same period last year and budget deficit remained 2.4 percent against 4.9 percent projected target for entire fiscal year.
He said home remittances stood at $897 billion, up by 15.25 percent over $7.79 billion for the same period of last fiscal year. Dar said a decline in exports was limited to 4.31 percent largely because of GSP plus status; otherwise it would have been on much higher side while imports have increased by 11.68 percent as the impact of decline in oil prices would reflect in coming months' import bill. The FDI stood at $422.8 million as against $354 million, maintained the minister. He said that inflation has declined to 6.1 percent in the first six months as against 8.9 percent for the same period of last fiscal year.
Dar said that the Zarb-e-Azb operation against terrorists has been very successful. About US-Pakistan relations and ongoing visit of US Secretary of State John Kerry, he stated that all the countries, including the US, must appreciate Pakistan's financial and physical sacrifices in the war against terrorism. He said that the US Secretary of State will hold discussions on a broad range of issues with a Pakistani leadership.
The finance minister said that Pakistan has a clear policy of maintaining peaceful relations with all its neighbours. He said that Pakistan is working on various regional connectivity projects for the development and prosperity of people of the region. Dar said that he was leaving for Tokyo to hold meetings with Japan's officials of finance, commerce and foreign ministries. Dar said that a judicial commission can be formed in half-an-hour if Pakistan Tehreek-e-Insaf wants. He said that all the issues regarding terms of reference of judicial commission have been agreed except "three very minor points."