Miftah says govt aims at bringing economic, fiscal stability
WASHINGTON
Federal Minister for Finance and Revenue Miftah Ismail has agreed with IMF recommendations to reduce fuel subsidies. Pakistan s new finance minister agreed with IMF recommendations to reduce fuel subsidies, pledging to pursue structural reforms to boost a crisis-wracked economy. The International Monetary Fund in 2019 approved a $6 billion loan over three years for Pakistan but disbursement has been slowed down by concerns on the pace of reforms.
Finance Minister Miftah Ismail, who took office this month after a previous government lost a no-confidence vote, said he had “good discussions” with the IMF on a visit during the Washington-based lender s annual spring meetings. “They ve talked about removing the subsidy on fuel. I agree with them,” Ismail, himself a former International Monetary Fund economist, said at the Atlantic Council. “We can t afford to do the subsidies that we re doing. So we re going to have to curtail this,” he said.
He said that former prime minister Imran Khan set a “trap” for his successors through heavy subsidies on fuel. Ismail, however, said that some targeted subsidies should remain for Pakistan s poorest amid sky-high global prices. Pakistan s new Prime Minister Shehbaz Sharif has vowed to jumpstart a moribund economy, certain to be a major issue in elections due by late next year.
Pakistan has repeatedly sought international support and suffers from a chronically weak tax base.
Ismail said that Pakistan, the world s fifth most populous nation, needed to move to a new economic model by removing obstacles and promoting exports to the world. “We have such an elite-benefitting country that almost every subsidy that you can speak of actually goes to the richest people,” he said.
Federal Minister for Finance and Revenue, Dr. Miftah Ismail said Saturday that the government was aiming to bring about economic and fiscal stability leading to economic recovery and growth.
While achieving this objective, the government would ensure that this growth was all inclusive by taking care of the poor segments of the society, the minister said while speaking at an event hosted by renowned US think tank Atlantic Council in Washington DC. He highlighted the economic agenda and priorities of the newly formed government in Pakistan, according to press statement issued by the finance ministry here.
Miftah reiterated the government’s commitment to attract US investment in all sectors of country’s economy by creating business friendly environment, adding the government also recognized the potential of Fintech and digital economy, and the sector would be facilitated further. He said that the government would take step-wise measures to ensure robust increase in country’s exports to resolve balance of payment and current account deficit issues. The minister also answered questions from the participants that included US government officials, economists, think tank experts and prominent Pakistani American entrepreneurs.
Speaking on the occasion, President of Atlantic Council, Frederik Kempe said that Pakistan and the United States had a longstanding partnership based on shared values of democratic governance, regional security and economic growth. The Atlantic Council is particularly working to promote economic cooperation between the two countries, he said and appreciated the role of Pakistani-American diaspora in this regard.
Minister for Finance and Revenue Miftah Ismail says attracting the U.S. foreign investments in all sectors of Pakistan s economy is the government s top priority. Talking to the delegation of the U.S. Pakistan Business Council in Washington, he said the U.S. corporate sector has a very long and productive relationship with Pakistan. Miftah Ismail said the government is focused on creating a business-friendly environment in the country.
The Finance Minister identified various areas in Pakistan s economy, particularly agriculture, technology sector, pharmaceutical, health sectors and digital banking where the US companies can enhance their investments in Pakistan. The meeting was attended by senior representatives of top U.S. investors in Pakistan.
