Economy has been put on right track, claims FinMin Aurangzeb
Business
Policy rate has been reduced which was an indication that the country was moving in right direction
KAMALIA (Dunya News) – Federal Finance Minister Mohammad Aurangzeb has stated that the country's economy has been put on right track and has started moving forward as a result of which inflation has come down significantly.
Talking to farmers and other stakeholders here on Sunday, he said that the country has been facing many issues, and “we do not have a magic wand to set everything right instantly.”
Policy rate has been reduced substantially which was an indication that the country was moving in right direction. “The country must move towards economic stability and develop an export-oriented economy,” the minister stated.
Minister Aurangzeb said that “we will not sit idle in Islamabad; we will go to the people to seek budget proposals. It is a wrong trend that stake holders throng Islamabad during the budget days.”
He advised traders to concentrate on strengthening economy and help the government in this regard.
He said that “we have not relied on anyone; we have progressed on our own.”
He claimed that the government fulfilled the promises it made “leading the country to economic stability.”
Inflation has reduced to 5 percent, and coffers have significant foreign reserves, he added.
‘INTEREST RATE’
Finance Minister Aurangzeb said the government was endeavouring to bring down interest rate to single digits.
With reduction in the interest rate, the economy would improve. “We will stabilise economy in 2025 by plunging interest rate further to single digit.”
He noted that the agriculture sector showed positive developments in 2024. Rice exports enhanced and remittances [from overseas Pakistanis] last year were $30.2 billion. He expressed optimism that remittances would exceed $35 billion this year.
The agriculture and poultry sectors need to be further developed, the minister added.
The finance minister said everyone should be united for the economic stability. Positive policies have led the economy to growth. There might be political differences, but everyone should join hands for the sake of the country, he stated and called for a “charter of economy”.
‘TAXES, NOT CHARITY’
The finance minister said taxation, energy and government institutions are being reformed.
“Educational institutions and hospitals can run on charity, but the country does not. A country runs on taxes,” he continued.
Aurangzeb mentioned that the tax authority is being reformed. The government is moving towards end-to-end digitization, with data available.
“My data is with the FBR, NADRA and the tax authority. Any discrepancies in data represent a leakage, which burden the salaried class and the manufacturing industry.”
He stated that the government did not want to put any additional burden on the salaried class. However, it is necessary to bring everyone into the tax net, and the government is working to close the leakage in the taxation system. Those who are not paying taxes will be required to pay them.
He pointed out that Pakistan's tax-to-GDP ratio is 9% to 10%, while countries in the region are at 18%. The goal is to bring the country’s tax-to-GDP ratio to 13.5%.
Finance Minister Aurangzeb said that the energy sector is being reformed. Tariffs will be reduced further and performance of distribution companies will be improved, he concluded.
