ISLAMABAD (APP) - The country can still save more than Rs 100 billion this year by slashing non-development expenditure of various ministries, departments and autonomous bodies, Chairman Panel of Economists Dr Hafeez Pasha said Wednesday.
In an Interview with CNBC channel he said, the new policy would put emphasis to curtail non development expenditures and mobilise resources to achieve economic stabilisation.
He said a panel of 18 leading economists were mulling measures to improve country's economy.
Final recommendations in this regard would be presented in January next year so that recommendations of the panel could be included in the 2009-10 budget.
"If you don't decrease non-development expenditure and resources are not mobilised then bid to avoid borrowing from central banks development budget will have to be slashed," he said.
To achieve economic stabilisation - new recruitment should be banned as many departments are over staffed.
No new projects should be announced as existing projects worth Rs 2300 billion are already committed, he opined.
He said a sum of Rs 50 billion could be generated within 8 months by imposing 4 to 8 percent regulatory duty on non-essential imports.
Trade with neighbouring countries especially India and China should be enhanced as it can help decrease the import bill by at least $ 1 billion.
Decreased oil prices are set to augur well for Pak economy as subsidies worth Rs 50 billion would be decreased as a result of decrease in oil prices.
It has also been proposed in economic stabilisation report that return rates on national saving schemes should be increased by 2 percent aiming to encourage savings and enable the government to avoid borrowing from the central bank, he said.
Social protection programme (Benazir Income Support Programme) should also be expanded up to 7.
5 households from existing 5 million house holds to help reduce poverty.
Tax to GDP ratio in Pak is 10 to 10.
5 percent one of the lowest in the world.
Agreement with IMF is to enhance tax to GDP ratio up to 15 percent in next five years, he informed.
Inflation would be decreased gradually 6 percent by 2009-2010.
Relief is in the offing as the international commodity prices are at decreasing trend.
Domestic inflation can be decreased in 12 to 18 months time.
Direct Foreign Investment (FDI) has increased in the country by 30 percent during last four months and it can jacked up further if the confidence of investors is enhanced, he concluded.