Finance Minister Mohammad Aurangzeb has stated that the economy is moving in the right direction and economic stability has been achieved in the country. Economic stability now needs to be transformed into sustainable economic stability, as reported by national media.
In a statement, Finance Minister Mohammad Aurangzeb said that the country’s foreign exchange reserves are increasing, the economy is on the right track, and economic stability has been achieved. Investor confidence has been restored. However, promoting investment in the country is essential, and economic stability now needs to be transformed into sustainable economic stability.
According to Finance Minister Mohammad Aurangzeb, it is our responsibility to ensure that the benefits of reducing inflation reach the public, and we are in constant contact with the Chief Secretaries in this regard.
The Finance Minister further stated that the banking sector plays an important role in the economy, and growth in the cement and automobile sectors has been seen. Institutional systems are being set up to monitor the prices of essential goods. Remittances will be taken up to 36 billion dollars, and efforts are being made to reduce the interest rate further.
He mentioned that a staff-level agreement with the IMF was made a few days ago, and all IMF benchmarks have been met. The agreement with the IMF was based on our good performance. As soon as the IMF Board approves it, we will receive one billion dollars. We have fulfilled the commitments made with the IMF. This is Pakistan’s program, and we need it. The discussions on climate financing with the IMF were also successful.
Regarding news about the IMF mission’s visit to Pakistan, the Finance Minister said he doesn’t know where these reports are coming from that the IMF mission has arrived. No mission has arrived yet; the IMF mission will come in mid-May.
The Finance Minister added that the difficult decisions that needed to be made in the past were not taken. Economic stability has already been achieved in Pakistan. By the end of June, the tax-to-GDP ratio will reach 10.6%, and economic growth this fiscal year is expected to remain at 3%.
He further stated that last year there was a 29% increase in revenue, while this year there has been a 32.5% increase in tax revenue. 105 billion rupees were collected from new tax filers, and 413 billion rupees were collected from traders. The use of better methods and technology in the FBR has been implemented, and the process for salaried individuals to file tax returns will be simplified. Salaried individuals will be able to file taxes without consultants, and people avoid joining the tax net due to the complex system.
He said that the reduction in electricity prices is a significant step. Reforms in the energy sector are ongoing, and the privatization process is progressing rapidly. 24 institutions have been handed over to the commission for privatization, and further improvements in the electricity sector can be expected.
In response to a question about the privatization of PIA, the Finance Minister said that the second round of PIA privatization will begin this month. Due to government-owned institutions, there is an annual loss of 800 billion to 1 trillion rupees. Efforts are underway for right-sizing ministries and institutions, and pension reforms have been initiated for the first time in the country.
The Finance Minister added that steps are being taken to reduce public debt, and the payment of interest on loans will decrease by one trillion rupees. Every sector will need to increase its exports. High taxes, high financing costs, and electricity prices are obstacles to investment.
He mentioned that they are currently reviewing budget proposals and recommendations. The IMF representatives will come and go, but we have a 37-month program with the IMF.
He further stated that the U.S. is Pakistan’s trade partner, and Prime Minister has formed two committees regarding tariff issues. A delegation from Pakistan will also visit the U.S. to resolve the matter, and we hope for a solution that benefits both Pakistan and the U.S.
