\u201cWe\u2019ll ensure that the benefit of the declining inflation rate … gets passed to person on ground,\u201d says Aurangzeb
\n islamabad
\nVowing to secure a \u2018Single B\u2019 credit rating this fiscal year, Pakistan\u2019s Finance Minister Muhammad Aurangzeb warned on Wednesday that the country\u2019s surging population was a \u201ctime bomb\u201d that had already detonated, urging swift reforms to address the economic strain.
\nSpeaking at the 8th Edition of The Future Summit in Karachi, he outlined a comprehensive agenda, covering key economic challenges, fiscal policies, and necessary reforms to stimulate growth.
\nHe said that the credit ratings were upgraded during the first quarter of the fiscal year, indicating that the economic trajectory was right.
\n\u201cIt is hoped that we will move towards a \u2018Single B\u2019 during this fiscal year so that we can rejoin the comity of nations,\u201d the FinMin said adding, \u201cOur fiscal and current account deficits have turned into surpluses.\u201d
\nAccording to a brokerage report, Pakistan\u2019s credit ratings are expected to improve further due to rising foreign exchange reserves, aiding future bond issuance in global capital markets.
\nDue to significant improvements in the external account, a steep decline in inflation, and a reduction in interest rates, the nation\u2019s economy is steadily stabilising.
\nTwo rating agencies have already upgraded Pakistan\u2019s rating by one notch, as a first indication of external stability, citing the country\u2019s improving macroeconomic conditions supported by the new International Monetary Fund\u2019s $7 billion loan programme.
\nPakistan\u2019s long-term issuer rating was raised by one notch to CCC+ by Fitch in July, and then to Caa2 by Moody\u2019s in August.
\nAurangzeb called for enhanced digitisation of the Federal Board of Revenue (FBR) to reduce human interference and curb corruption, a move he said would help streamline tax collection and improve transparency.
\n\u201cThe government has no choice but to increase taxes,\u201d Aurangzeb said and in the same breath add that he was not in favour of additional levies on salaried workers and industries as he deemed themt unfair.
\nTying incentives to the targets, the top economic manager urged the private sector to increase its capacity and support efforts to limit the flow of speed money.
\nThe finance czar also underscored the importance of ensuring fair market practices, particularly in controlling prices of essential commodities like poultry and pulses, which he noted have not decreased in Pakistan despite falling globally.
\n\u201cWhere we see anomalies, we will come down hard,\u201d said Aurangzeb, adding that the prices of pulses and chicken would become a standard agenda item in the Economic Coordination Committee (ECC) meetings henceforth.
\n\u201cIf you look at these two food items, internationally their prices have declined, petroleum prices have generally decreased in the last six months alongside the transportation cost. How can we have a 50- 60% increase in the prices of pulses and a 15% jump in the price of chicken?
\n\u201cWe will simply not allow middleman arbitrage,\u201d he said. \u201cWe\u2019ll ensure that the benefit of the declining inflation rate, which has reduced from 38% to single digits, gets passed to the person on the ground,\u201d he said.
\nAurangzeb expressed a commitment to an export-led economy, stating that this transition is crucial for the country\u2019s economic <\/p>\n","protected":false},"excerpt":{"rendered":"
\u201cWe\u2019ll ensure that the benefit of the declining inflation rate … gets passed to person on ground,\u201d says Aurangzeb islamabad Vowing to secure a \u2018Single B\u2019 credit rating this fiscal year, Pakistan\u2019s Finance Minister Muhammad Aurangzeb warned on Wednesday that the country\u2019s surging population was a \u201ctime bomb\u201d that had already detonated, urging swift reforms […]<\/p>\n","protected":false},"author":2,"featured_media":442127,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-442097","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n