ISLAMABAD - Advisor to Prime Minister on Finance Shaukat Tarin Friday hinted that the prices of petroleum products would be reduced in a week, saying a transparent price mechanism of petroleum would be announced in the next federal budget for the fiscal year 2009-10. Tarin while addressing a press conference here said, Petroleum Development Levy will be made transparent in the next budget and everyone will be able to calculate the petroleum prices at petrol pumps. The Advisor on Finance said that the fiscal deficit could be 4.6 per cent, as the International Monetary Fund (IMF) had given relaxation on fiscal space adding, The fiscal deficit for the next financial year is estimated 3.4 per cent. He said that due to negative growth in manufacturing sector and reduction in imports, the revenue collection of the country had declined, which enhanced the fiscal deficit. He said that aid from Friends of Democratic Pakistan (FODP) would not cause any economic growth in a short run, adding short-term economic growth would only be achieved through economic production. He said Pakistan would not apply for standby facility loans, adding the country didnt want to take loan for the sake of loans. He said that countrys economy faced $35 billion loss due to war on terror, adding Pakistan had urged the United States to provide aid without any delay. On the issue of funding the worst human crisis in the NWFP, he said the government would establish a Trust Fund with the help of donors for the rehabilitation of internally displaced persons (IDPs) and reconstruction of infrastructure in militancy-hit areas. Tarin said that donors conference would be held during the next week with the help of United Nations to collect funds for the rehabilitation of affected people. He added that special allocations would also be made in the upcoming federal budget for the reconstruction of the affected areas. He further said that Pakistan would require $2 billion within next two years for the rehabilitation and reconstruction of terrorism-affected areas. He said that defence was the top priority and the country was committed to spend as much as needed in this regard even at the cost of cutting funds of other sectors. He said that Pakistan would get $2.45 billion from various sources before next month, which included $900 million by USA, $800 by Asian Development Bank and $600 from World Bank. The Advisor said that the Friends of Pakistan had provided assistance to the country beyond its expectations, adding, We expected about $4 billion, however, the forum pledged to provide $5.28 billion. He further added that out of the amount, the share of grants and soft loans was $600 million, $400 million was budget support and the remaining was project finance. Tarin said that the aid would be utilised in three major sectors including poverty reduction, education and health care. He said that the assistance would have no remarkable impact on countrys economic growth on short-term basis however, it would definitely leave impact on economy in the long run. He said World Bank had also agreed to consider providing assistance for developing big water dams and reservoirs, besides agreeing to support the ADB funded 7.76 million CASA energy project, which had now been abandoned by ADB. The project aims to import 1,000 megawatt electricity from Tajikistan, of which 700-750 MW will reach Pakistan and the rest will be utilised by Afghanistan, Tarin said. He said that an agreement with Tajikistan for 3,000 MW electricity was singed in 1993, however this could not be materialised due to security situation in Tajikistan, adding it would also be reviewed. He said that ADB would provide $4.5 billion during the next three years and would also increase the amount, besides providing additional assistance for water sectors. He said that the US was making laws for setting up ROZs in the tribal areas, NWFP and Balochistan, adding that the area for the purpose would be increased. He said that US has also agreed to Pakistans proposal for Free Trade Agreement (FTA) and had given nod to initiate negotiations in that regard. He said that US had also been asked to develop a proper mechanism to provide timely assistance for war against terrorism, adding that $1.5 billion coalition support fund would be coming in the next two months. He said that the inflation would come to single digit in September or October of this year. He said that monitoring committees would be established in Ministry of Food and Agriculture, which would monitor crop situation all over the world for better management of countrys crop. Replying a query, he said that the upcoming budget would focus on production sectors including agriculture, manufacturing and energy sector.