KARACHI: Federal Finance Minister Shaukat Tarin said if the Kerry-Lugar Bill is cancelled, the government will have to incur budget deficit of $800 million during the current fiscal year, for which government will have to recourse to International Monetary Fund (IMF) for more debts, adding the government will have to slash its expenditures as well.
Addressing a seminar here, he said the expected amount to be received from Kerry-Lugar Bill is bound to be used on the social works and the areas hit by war against terrorism.
Shaukat Tarin said a plan is being hammered out in concert with the central bank in view of depreciating dollar at international level, so that forex reserves could be shifted to two to three currencies.
The federal finance minister said during the first quarterly of the current fiscal year, the target of budget deficit was 1.5 percent against 1.7 percent. He also underscored that the government decided not to give loans to all the government institutions including Pakistan Steel.