ISLAMABAD (Kashmir English): Pakistan has decided to focus on its approach towards trade and investment rather than an aid-related approach and is hopeful of sustainable economic growth, according to Finance Minister Senator Muhammad Aurangzeb.
The finance minister stressed that this approach is specifically aimed at enhancing partnership opportunities, particularly in GCC nations.
During a CNN Business Arabia interview, Aurangzeb highlighted that the current strategy indicates a confident, growing economy and changes within the country.
Now, the country has been able to achieve results for the better over the previous 18 months with a macroeconomic program. The country has been able to bring down the inflation rate from a peak of 38 percent to single digits. The balance position has been enhanced with a current deficit within the desired range.
Besides, the minister added that the foreign exchange reserves of Pakistan are sufficient to meet 2.5 months of their imports, and the exchange rate in their country has been stabilized.
In addition, he said that the credit ratings of Pakistan have been upgraded by the three major international credit rating agencies this year and that the IMF approved the second review of the Extended Fund Facility of the country.
“Macroeconomic stability has been ensured by prudent monetary and fiscal policies and structural reforms,” Senator Aurangzeb said. He cited reforms made in the areas of taxation, energy, public sector enterprises, and privatization, with the focus on providing a stable platform for sustainable economic growth.
There has been considerable improvement in the collection of taxes from 8.8 percent of GDP in the last fiscal year to 10.3 percent of GDP, and it is expected to move on to 11 percent. The government is working on expanding the tax base and covering sectors like real estate, agriculture, and the wholesale and retail sectors.
The energy sector reforms are centered on the management of distribution companies, privatization, as well as minimizing circular debts to ensure that electricity is made more affordable to industry to boost economic growth.
Senator Aurangzeb also has argued that close allies of GCC nations such as Saudi Arabia, the UAE, and Qatar, had long supported Pakistan, but it was now entering into a new phase of trade development and investments, signaling an end to its current economic vision.
