Economic Reforms and Growth
Federal Finance Minister Muhammad Aurangzeb has pledged to close tax loopholes, enhance investor confidence, and maintain economic reforms. He made this statement while addressing the Rawalpindi Chamber of Commerce and Industry’s Independence Day event. The minister’s goals are aimed at promoting economic growth and stability in the country.
International Recognition and Economic Confidence
Aurangzeb noted that international institutions have welcomed Pakistan’s reform measures. Recent Gallup surveys have also shown rising economic confidence, indicating a positive trend in the country’s economy. This increase in confidence is reflected in the growth of the stock exchange, which has seen a 60% increase, as well as an rise in new investors and company registrations, with 250,000 new companies being registered.
Monetary Policy and Inflation
The minister suggested that the key policy rate could be cut further this year, citing falls in average and core inflation. This decision is based on the improved inflation outlook and signs of moderate economic recovery. Earlier in May, the governor of the State Bank of Pakistan announced a 100 basis points cut in the policy rate, highlighting the positive economic trends.
Economic Agreements and Investments
The government has finalized economic growth-focused agreements with the International Monetary Fund (IMF) and reached a favorable tariff deal with the United States. Additionally, the government is working on key accords with China, including the issuance of Panda bonds by the end of the year. A benchmark for Sukuk bonds has also been set, providing more investment opportunities.
Rightsizing and Privatization
Aurangzeb highlighted the ongoing rightsizing of 45 ministries and the accelerated privatization of state enterprises. The government is also working to reduce electricity tariffs, with further energy cost improvements expected. The minister assured that taxation reforms would not burden the salaried class and that the prime minister is personally overseeing the transformation of the Federal Board of Revenue (FBR).
Unity and Economic Growth
Calling for unity, Aurangzeb emphasized that the private sector must lead economic growth, with the government’s role being to provide a favorable business climate. He stressed the importance of monthly meetings with chambers to address business concerns and promote economic development.
Conclusion
In conclusion, the Federal Finance Minister’s pledges to close tax loopholes, enhance investor confidence, and maintain economic reforms are crucial steps towards promoting economic growth and stability in the country. The government’s efforts to finalize economic agreements, reduce inflation, and privatize state enterprises are expected to have a positive impact on the economy. With the private sector leading the way and the government providing a favorable business climate, Pakistan is poised for economic growth and development.
