Shenzhen: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb has said that building the stability of the overall economy on a sustainable basis is one of the main goals of the government, due to administrative measures and structural changes, the Pakistani currency is stable.
Addressing the Pakistan-China Business Conference in Shenzhen, China, he said that under the Prime Minister’s agenda, the private sector will play its key role in the development of the economy, not the government. Panda bonds will be issued during the next fiscal year. Businessmen and investors should increase their investment in Pakistan
The finance minister said that the indicators of the overall economy are positive and correct, the growth rate of agriculture in Pakistan this year is 6.2%, I am sure that this trend will continue in the production and services sector of major industries. Stability and discipline has been ensured since, primary balance is in surplus, current account deficit has reduced, remittances and exports are increasing, current account deficit is over one billion dollars this year. In addition to textiles, the share of agriculture and IT is also increasing in exports.
He said that due to administrative measures and structural changes, the Pakistani currency is stable, speculations in the currency market have been reduced, foreign exchange reserves with the State Bank have exceeded 9 billion dollars, which is two months’ worth of exports. are enough for
The finance minister said that inflation is a real problem in Pakistan’s economy, inflation is gradually decreasing, last year the inflation rate was 38 percent, which is close to 11 percent this year, not only because of prices for consumers. Indices but also food inflation has decreased, reduction in policy rate will have a positive impact on the economy, positive trends are being seen in the market which is reflecting the confidence of investors on the Pakistani economy.
The finance minister said that the foundations laid by Prime Minister Shehbaz Sharif in the previous regime through the standby agreement for the stability of the economy are coming to fruition. We have successfully completed the 9-month program of the IMF. This has benefited the economy as a whole, with the government negotiating with the IMF for a broader and longer-term programme.
He said that there are two reasons in front of us that we want the last long and extensive program from the IMF, the first reason is to build the stability of the overall economy on a sustainable basis, under which reforms in various sectors. The series will continue.
He said that the tax rate will be increased from the current level to the level of 13, 14 percent in proportion to the gross national product, improvements will be made in the energy sector, the process of improving governance in the energy sector is ongoing. In this context, the private sector is being included, reforms are also underway in government-owned institutions.
The finance minister said that according to the Prime Minister, this is the internal agenda of Pakistan. Under this agenda, the private sector will play its key role in the development of the economy, not the government. The government will provide the policy framework and ensure its continuity. will make
Referring to the future plan of the government, the finance minister said that the government is focusing on export-led growth and in this regard today we are talking to Chinese investors here, we believe that special economic zones They play a key role in promoting exports.
The finance minister said that the increase in foreign direct investment is also our priority. Discussions between the government and private sector of both countries are ongoing in the Shenzhen Forum. We wish to have a joint venture between the two countries.
He said that access to the international capital market is also our goal. In the past, Pakistan had issued bonds in the American and Euro markets. In the coming financial year, we intend to use the Chinese capital market. While Pakistan is issuing panda bonds, through this we will have access to the Chinese capital market, which is the second largest market in the world.
The Finance Minister invited the Chinese investors to increase their investment in the country and said that the government of Pakistan will provide all kinds of facilities to the Chinese businessmen and investors, the small problems that exist will be resolved. .