Finance Minister Miftah Ismail recently said that the national economy is moving in the right direction due to prudent policies of the government. In his remarks, Miftah said revival of the IMF programme was top most priority of the government after taking reins of power. The scope of tax net is being increased and business class is being brought under tax net. He said that the government by adopting prudent policies has saved the country from default. The Finance Minister said that flood-affected people will not be left alone in this testing time and they will be compensated by utilizing all available resources, even diverting PSDP funds for their rehabilitation.
It is worth mentioning here that flash floods have caused devastation on a large scale in the country. An amount of 28 billion rupees has been disbursed through Benazir Income Support Programme in order to provide relief to the affected people. Initially an amount of 25 thousand rupees is being transferred to affected families so that they can meet ration needs.
After IMF package, economy is moving in right direction due to prudent economic policies of the present government. The government inherited a weaker economy and had to take difficult decisions to improve the situation. Pakistan has to mobilize its industry to flourish its economy and ensure that we are able to meet our domestic and international financial obligations. We also need to work on our import policies and heavy duties should be levied on luxury items to discourage their use. Pakistan is now facing devastating floods which will impact the economy as human lives, properties, crops and livestock have suffered huge damages. The incumbent government and stakeholders are working ceaselessly to provide as much relief to the affected people as possible.
In this regard, the agreement signed between the government and the IMF is adequate and they have also promised additional aid. The country’s economy is going in the right direction. There are several ways in which the aid could be used, but it is different because this amount will be used as foreign exchange reserve. The investment of around $12 billion from friendly countries will help boost the economic situation of the country and will help in generating employment in different sectors.
The government now has to devise new policies to attract more foreign direct investment into the country. The revenue coming in should be capitalized for the betterment of the people.
In order to better manage the economy, the government needs to formulate policies to increase exports. However, if we reduce the imports to a great extent, it could also hurt the exports. Moreover, the government needs to curb the imports of luxury items. The biggest step to take is to restore confidence of people and investors. This is the only solution to improve economy. Political stability in the country is vital for improving the economy.
