ISLAMABAD (APP) - Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb said on Tuesday that a single-day strike might cause cumulative losses of around Rs 190 billion to the national economy.
Addressing a press briefing, the minister said that the Ministry of Finance’s Economic Wing had formally calculated the adverse impact, taking in account losses in gross domestic product, tax revenue, law enforcement costs, business and export losses, foreign direct investment flow, and information technology.
He said the social sector had also been affected, with hospitals, construction workers, street vendors, and taxi drivers adversely impacted. Approximately 0.8 million people in Islamabad did suffer for over the last 2-3 days, he added.
Currently, Pakistan’s total GDP stood at Rs 124 trillion, with Q2 estimates at Rs 32 trillion on that basis the Economic Wing estimated losses, he said.The government was focusing from stability towards growth side, he added.
On the economic front, the minister highlighted that macroeconomic stability had begun to take hold, with currency stability and $10.7 billion in reserves following the International Monetary Fund tranche.
He said inflation has dropped to 6.9%, a 44-month low, with all three elements – headline inflation, core inflation, and average inflation – now in single digits.
The minister expressed the optimism that the policy rate would gradually decrease in the upcoming State Bank of Pakistan (SBP) monetary policy meeting.
He emphasized that Karachi inter-bank offered rate (KIBOR), a key factor, was already below expected levels. Furthermore, the government had reduced its borrowing to minimize debt servicing costs, enabling banks to lend more to the private sector.
Aurangzeb urged the citizens to avoid activities harming the economy, emphasizing the government’s commitment to consolidating economic position and achieving sustainable growth.
The minister also condemned the terrorist attack on Chinese citizens, extending condolences to the Chinese government and people.
Aurangzeb said that he and Minister for Power Sardar Awais Ahmad Khan Leghari had led negotiation with power companies by requesting them on debt re-profile and to extend maturity due to which the government might bring deduction in tariff.