Govt bars institutional investment in saving schemes Islamabad:The economic wizards of the incumbent regime took an alarming decision to bar the institutional investment in the national saving schemes(Nss), ensuring further strengthening of the monopoly of the commercial banks(Cbs)In the country as all the institutional inflows would now park in the banks meaning by that the reliance of the government for budget financing would increase manifold on banks and decrease Where Do You Get Louis Vuitton bags on national saving schemes. The government borrows from the banks on the interest rate of around 14 percent whereas banks give the interests to depositors not more than 56 percent.However, cdns under national saving schemes provide the borrowing to the government at average cost of 89 percent. The powerful lobby of the banks with the connivance of the top functionaries of the finance ministry on monday managed to get the decision of economic coordination committee(Ecc)In its favour by disconnecting the investment from Louis Vuitton Luggage Bags the institutions in the national saving schemes.The ecc meeting, held with dr hafeez a sheikh, took this decision inflicting the loss to the interests of the common people as well as the government's. Dr ashfaq h hasan khan, former economic adviser to the finance ministry currently rendering meritorious services as dean of economic department in nust, when contacted, lambasted the government saying this unfortunate decision will further strengthen the already powerful lobby of the banks, which provide loans to Louis Vuitton Outlet the government on 14 percent interest rate. All the institutional investment inflows, which used to land in the nss have been diverted to the banks under this 'ugly decision'.He said that the government reliance from low cost browning from cdns at 89 percent interest will be substituted to the higher cost of the borrowing from banks at 14 percent. The existing debt servicing of rs800 billion would also inflate substantially because of the domestic borrowing from the low cost to higher cost.On top of it, the fiscal space for the government would further erode. The economic coordination committee also accorded approval for the sale of wheat stocks lying with passco.Moreover, the committee also constituted committees for the further deliberation on the summaries moved by the ministry of food and agriculture, ministry of industry of production, on the cost of wayen poly purphelane bags, and subsidy on sale price of imported urea. In the summary the ministry of food and agriculture has proposed that passco be allowed to sell 200, 000 tons of wheat lying in its stores.The finance division has already accorded its approval. On the summary moved by the ministry of finance to the ecc it was proposed that institutional investment in the national savings scheme may be discontinued except that individual funds like pension, gratuity, superannuation, contributory provident funds and trusts, etc, held by the institutions may be allowed for investments in nss.It may be added here that the proposal was earlier submitted to the prime minister by the finance division who had desired that the same may be put up in the ecc for discussion on it. The ecc constituted committees on the summaries for the subsidy and sale price of imported urea, in which the committee was requested by the Louis Vuitton Bags Sale ministry of industries and production to allow fix the price of the imported urea comparable with the market prices. After having detailed deliberation on this subject, the minister constituted a committee comprising chairman planning commission, secretary food and agriculture, industries and chairman tcp to have further deliberations and submit their report to the next ecc. Earlier the ecc was given presentation on the implementation of the last decisions the ecc constituted committees on the summaries for the subsidy and sale price of imported urea, in which the committee was requested by the ministry of industries and production to allow fix the price of the imported urea comparable with the market prices.
留言列表
