Says will visit Washington in October for talks with IMF
ISLAMABAD
Finance Minister Shaukat Tarin has said that the government has chalked out a comprehensive plan to achieve inclusive and sustainable growth.
This finance minister stated this while addressing a joint press conference along with some members of the cabinet and Economic Advisory Council (EAC) on Friday.
Tarin dilated upon formation of short, medium and long term plans across different sectors of the economy under the umbrella of the EAC. He said a mechanism has also been developed to ensure implementation of the plan to achieve the targets set for different sectors.
He said that the provincial governments will prioritise achieving universal access to quality education, health, access to drinking water and sanitation. Similarly, the federal and provincial government would enhance focus on human development & develop physical infrastructure which is lagging behind in far-flung areas.
He said that the medium-to-long term planning also includes completion of CPEC projects especially in agriculture, industrial cooperation, socio-economic development and financial inclusion. It also includes utilisation of Special Technology Zones, IT parks, incubation and entrepreneurships centres that complement CPEC investments. In the sphere of power and energy, the long-term planning encompasses implementing renewable Energy Policy and National Power Policy to attain the goal of 60% energy generation from non-fossil fuels including hydro-power generation.
He said Prime Minister Imran Khan will regularly be briefed about the implementation of the plan and the people will also be kept informed about the progress on it.
He said the broad objectives include accelerating the overall economic growth rates from 3% to 6% in the next three years without creating pressure on balance of payments and by keeping inflationary expectations subdued. It also includes increasing the tax to GDP ratio by 1.5 to 2% annually and attaining the target of $30 billion exports by FY 2023-24 and keep up the momentum in foreign remittances.
He said the key focus is to generate massive employment opportunities over the period of time in order to engage the youth in productive sectors of the economy. The sectors underlined for driving growth through the platform of EAC are agriculture including small farms, micro-enterprises, SMEs, construction, tourism and information technology.
The finance minister stated that a positive sentiment has been generated as the economy is on the right track. It has embarked on the path of economic growth after the stabilisation phase due to prudent policies of the present government, he added.
He said the plan for resolving the circular debt includes reducing the cost of electricity generation by flattening the capacity payment curve through restructuring power producers. This will be done through a combination of re-profiling of project debts, reduction in Return on Equity (EOC) and O&M components of tariffs.
At the same time, steps will be taken to boost demand for grid electricity by incentivizing captive-to-grid shift and integration of NTDC-KE networks. It will also include replacing cross-subsidies with direct subsidies, lowering tariffs for high consumption categories, target price deregulation and improving governance through engagement with the private sector, he said
Responding to a question, the finance minister said, “Our negotiations are continuing with the International Monetary Fund (IMF).” He ruled out the possibility of coming out of its programme. He said he will also visit Washington in October for one-on-one talks with the international lender.
Minister for National Food Security Fakhar Imam said that new initiatives are being launched to strengthen the agriculture sector. He said the country witnessed a significant increase in major crops.
He said, “Our focus is now on improving the cotton production by providing quality seeds and other inputs to the farmers at reduced rates.” He said the research institutes will be upgraded to achieve high productivity in the agriculture sector.
Imam said the government is giving special emphasis to improve the living standards of the farmers. “For this purpose, we increased the support price of wheat from fourteen hundred rupees per forty kilogram to eighteen hundred rupees per forty kilogram.” Efforts, he said, are also afoot to upgrade the livestock sector.
Minister for Industries and Production Khusro Bakhtiyar said the government is focusing on “Made in Pakistan.” He said the government’s policies have started yielding results. There has been fifteen percent growth in large scale manufacturing (LSM). He said, “We are giving tax incentives to the small and medium enterprises (SMEs) and hurdles are being removed to provide them the credit.”
Bakhtiyar said the government now plans indigenisation of raw material in order to strengthen its industrial base. He said an industrial zone is being established on 1500 acres of land in Karachi and export oriented industries will be encouraged to make investments in it.
Adviser on Commerce Abdul Razak Dawood said the government’s target is to bolster exports. He said export targets are being achieved. He said, “We want to rationalise our imports by encouraging local production.” He expressed satisfaction over the local manufacturing of mobile phones.
Dawood said, “We have done the tariff rationalization and fifty percent of raw material being imported is duty free. He said this facility will be further expanded in the next budget.”
Dr Ishrat Hussain emphasised the need for empowering the local bodies in order to provide basic amenities to the people at their doorsteps. He said a plan has been prepared to revamp the state owned enterprises.
Member of Economic Advisory Council Arif Habib and Muhammad Ali Tabba commended government’s pro-business policies. Arif Habib was appreciative of the government’s construction package and the housing scheme.
Muhammad Ali Tabba said that more people are showing interest in the manufacturing as a result of government’s policies. He was confident that the government will surpass the growth target set for the current fiscal year. TLTP
