ISLAMABAD, Pakistan: The Minister for Finance and Revenue Ishaq Dar has said that the incumbent government is highly committed to address the structural deficiencies.
Replying to a question in the National Assembly, the minister said that the government is undertaking reforms such as curtailing circular debt in power and gas sector, increasing tax revenue by broadening the tax base, controlling inflation through proactive monetary policy etc. to ensure economic stability and growth.
Ishaq Dar said that the government is implementing economic reforms program to address deep seated structural imbalances and reduce external sector vulnerabilities to achieve sustainable and inclusive growth.
It is highly committed to correct macroeconomic imbalances and to achieve higher inclusive and sustainable growth through measures for different sectors of the economy like agriculture, industry, exports and social sector, added.
The finance minister said that the focus is to stabilize the economic growth, control inflation, increase revenues, enhance exports, and provide maximum relief to improve the socio-economic condition of poor.
The government has taken some immediate and tough decisions such as removal of subsidies, increase in energy prices, announcement of austerity by Prime Minister to curtail government expenditure, and increase in General Sales Tax (GST).
The minister said that the government has ensured that the vulnerable population is protected from the brunt of these measures and has recently increased Benazir Income Support Programme’s (BISP) allocation from Rs 360 billion to Rs 400 billion.
With the help of the current IMF program, the government is taking corrective measures to tackle the structural issues plaguing our economy. However, the enormity of the issues require time as well as financial and technical assistance of International financial institutions, multilateral development banks, friendly countries etc., to strengthen Pakistan’s macroeconomic resilience and accelerate inclusive and sustainable growth, he said.
At the same time, the minister added, that the policy decisions taken by the government ensure that once Pakistan’s economy recovers from the multiple exogenous shocks, the need for external financial assistance would dramatically reduce.
