Current economic situation revive confidence of businesses: Tarin

The minister informed that all key economic indicators relating to the real sector of the economy

ISLAMABAD (Dunya News) – Minister for Finance and Revenue Shaukat Tarin on Wednesday said that the current economic situation had revived the confidence of business community for rapid economic growth in the country.

The minister briefed the members of Monetary and Fiscal Policies Coordination Board on the current economic situation of the country and highlighted the major incentives given in the budget due to which confidence of businessman was improving and the economy was moving toward stability, said a press release issued here.

A meeting of the board was held under the chairmanship of the Minister for Finance and Revenue, Shaukat Tarin here .

Other members of the Board present in the meeting were the Adviser to the PM on Commerce and Investment Abdul Razak Dawood, Deputy Chairman Planning Commission Muhammad Jhanzeb Khan, Governor SBP Dr. Raza Baqir ,Dr. Asad Zaman and senior officials of the Finance Division.

The minister also informed that all key economic indicators relating to the real sector of the economy, fiscal sector, monetary and external sectors were going well and the government was proactively executing all policy measures to achieve the major socio-economic targets of the current fiscal year.

He also highlighted the possible risks to the economic activities and strategy to counter these risks which were appreciated by the members of the board.

Secretary Finance Yusuf Khan briefed the members on budgetary allocations for various activities and informed about the ways and means to maintain the fiscal discipline.

He also shared the strategy to contain the non-development expenditure with the focus to optimally utilize resources of the country and improve the service delivery at large for the common man.

The Governor SBP informed the board about the Monetary Policy stance. He shared the analysis of the SBP on policy rate, credit availability, exchange rate movement and inflationary situation.

He also explained that policy mix was supporting the growth momentum and highlighted the increase in commodities prices in the global market which had implications for higher import bill and inflation.

He informed that it was encouraging signs that exports were picking up along with an increase in import of machinery which would enhance productive capacity of the economy and create exportable surplus.

He also explained the policy measures which SBP was executing to encourage business activities in various sectors of the economy and highlighted that there were ample opportunities for investors/exporters and youth of the country to take benefits from SBP’s schemes to extend or initiate their business.

Deputy Chairman Planning Commission apprised the meeting about the execution of development activities.

He also highlighted the possible options for resource mobilization and to utilize them effectively for development of potential sectors of the economy.

The Adviser to the PM on Commerce and Investment briefed about the trade structure of the country along with major destinations.

He also presented the various measures which were under execution to enhance exports in potential areas.

He also mentioned the various categories of imports which could be rationalized by focusing on their substitutes.

A comprehensive road map was also discussed to minimize the trade deficit of the country. It was also highlighted that fiscal and monetary facilitation would continue for potential sectors of the economy.

Dr. Asad Zaman appreciated the major fiscal and monetary measures of the government which were supporting the business activities.

He also highlighted the potential areas where Pakistan had comparative advantages in the export market and also identified some low hanging fruits for import substitution.

He emphasized that the goal of well-coordinated Monetary and Fiscal Policies was to achieve full employment.

The Minister for Finance and Revenue emphasized the importance of the Monetary and Fiscal Policies Coordination Board for designing and executing policies to achieve economic targets and overcome the possible risks.

He advised to make this forum more effective for maintaining better coordination of policies to achieve the planned macroeconomic goals.