Pakistan is in a better economic position than before, growth momentum will continue, Finance Minister

Pakistan is moving from aid-based relations towards trade and investment, Muhammad Aurangzeb
Islamabad: Federal Finance Minister Muhammad Aurangzeb has said that Pakistan is now in a better economic position than before and the momentum of economic improvement is continuing in the current fiscal year.

Speaking at the Leaders in Islamabad Business Summit, Muhammad Aurangzeb said that production in large-scale industries has improved, the current account is benefiting from strong growth in remittances while IT exports are also continuously increasing. The country is moving towards a sustainable and export-based economic growth model.

The Finance Minister said that Pakistan is moving from aid-based relations towards trade and investment. Increasing trade and investment ties with bilateral partners, mobilizing investors and expanding trade relations are among the government's priorities.

He said that Pakistan has set a clear direction for export-based economic growth. Exporters are being provided refinance at a rate of 4.5 percent, although the policy rate is 11.5 percent. Measures are also underway to make traditional export sectors more competitive. Last fiscal year, Pakistan's GDP growth was about 3.7 percent and the pace of economic growth remains intact in the current fiscal year.

He said that the State Bank has estimated GDP growth to remain between 3.5 to 4.5 percent during the current fiscal year and Pakistan is moving towards a sustainable economic growth model.

On the other hand, according to the Ministry of Finance, the Pakistan Investment Roundtable was organized under the auspices of the Pakistan High Commission London, in which prominent investors from London and representatives of global financial institutions participated.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb was the chief guest of the event. Governor State Bank Jameel Ahmed, Adviser to Finance Minister Khurram Shehzad and Pakistan's High Commissioner to the UK Tipu Usman were also present on the occasion.

Muhammad Aurangzeb said that the government is making all-out efforts to stabilize the national economy and for sustainable economic growth, while focus is also on providing more opportunities to the private sector through reforms in various sectors. Positive results of the government's fiscal policy are emerging, budget deficit has decreased and government revenue has increased, while there has also been progress in fiscal and institutional reforms.

He said that the government is also moving forward with the privatization process along with reforms in state-owned enterprises. The economy will be further stabilized through reforms in the energy sector, transparency in financial matters and ease of doing business measures. For economic growth, it is necessary to broaden the tax base and effectively implement tax laws. Discretionary powers of tax authorities have been abolished and no special concession is being given to anyone in tax matters.
The Finance Minister clarified that no new additional tax has been imposed on the salaried class.

He said that Pakistan's economy faced difficulties due to the severe floods across the country last year and the recent war in the Middle East. The situation in the Middle East has also affected oil prices globally. Muhammad Aurangzeb said that there are vast opportunities for business and investment in Pakistan and interest of international investors is increasing again.

He informed that Pakistan has successfully completed all IMF reviews on time, while the country's credit rating has also improved 3 times.

According to the Ministry of Finance, later in the question and answer session, the Finance Minister talked with representatives of financial institutions, in which Pakistan's economy, investment environment and cooperation with international financial institutions were discussed. During the question and answer, available investment opportunities in various sectors were also discussed.