ISLAMABAD
Finance Minister (FM) Muhammad Aurangzeb has said economic stability has come in the country and it has now to be fortified.
National economy is set on right direction. Economic stability has come in the country and we are taking concrete steps to finalize IMF program. Taxes net is being extended. We are considering over talks in connection with US tariff. Delegation will go to US with the approval of Prime Minister, he said this while addressing a press conference here Saturday.
Talking about positive indicators in national economy foreign exchange reserves are on rise as well. The foreign exchange reserves will surpass 18 billion till June. Inflation is sliding persistently. Remittances have surged by 32 percent. Remittances are likely to rise by 36 percent this year.
He went on to say government is keeping watchful eyes on prices of commodities. Institutionalized system is being carved out to keep eye on prices.
Banking sector has vital role in economy. Interest rate has come down from 22 percent to 12 percent.
The reduction in policy rate by central bank has left positive impact on national economy.
Exports are rising. Government is endeavoring that necessary imports witness no decrease. The profit of the companies is on rise. The inflation has come to the lowest level within six months.
Government is working to ensure transfer of impacts of reduction in inflation to common man. ECC is focusing on further decline in inflation.
The confidence of local investors is building. Foreign investment is witnessing upward trend.
Economic stability is must with reference to international trade. Stock market is making new records. New investors are becoming part of stock market.
He pointed out staff level agreement has been reached with IMF. We are taking solid steps to finalize the program. Bench marks of international fiscal institution have been completed.
Monitoring on monthly basis is being conducted in regard to IMF targets. This program is our requirement.
We have taken difficult decisions in the past. Difficult decisions are the need of hour to get rid of IMF program.
He said that country’s economic growth is likely to remain 3 percent in the current fiscal year.
Auto sector has shown excellent performance in first six months of the current fiscal year. The production of vehicles registered 40 percent increase. The sale of motorcycles witnessed 30 percent increase.
He indicated work is underway on tax reforms. Tax revenue collection has risen 32.5 percent in the current fiscal year. Rs 105 billion were received from new tax filers. 413 billion rupees tax was collected from traders. We will take tax to GD ratio to 10.6 percent till the month of June. The salaried class will be able to file tax return by itself till September this year. The process for filing tax return will be made easy for this class.
Number of tax filers has doubled. Tax to GDP ratio will be taken to 13.5 percent in three years.
The next tranche of one billion dollars will be provided with the approval of IMF.
We are introducing structural reforms in energy sector. We are taking forward privatization process. 24 institutions have been handed over to privatization commission. We are extending tax net. We want to take along all. What difficult decisions we were to make were not made in the past. Had these decisions been taken the country would have not gone to crisis.
We are bringing government loans down.
Successful talks have been held with IMF on climate financing. The delegation will come to Pakistan again in the middle of May. Important talks will be held with the delegation.
We are reviewing budget recommendations and proposals.
Responding to a question about US tariff he said Prime Minister has constituted two committees in this regard. We are considering for holding talks on the matter of tariff. A high level delegation will go to Washington for talks with the approval of Prime Minister.
US is the best business partner country. It is hoped tariff matters will be settled in befitting manner. We are working to counter tariff effects.
