ISLAMABAD – International credit rating agency Moody’s has said in itsreport that Pakistan’s economy has the potential to grow at an annual rateof 4%.
The Moody s report said that Pakistan s economy has the potential to growat more than 4% per annum and the increase in LSM growth rate will furtherboost the country s overall economic performance.
The report said there is a possibility of higher growth rates in the futureafter achieving economic stability.
On the other hand, Federal Minister for Finance Shaukat Tareen said thatthe continuation of comprehensive and sustainable growth is one of the toppriorities of the present government, adding that for the first time in 10months, Pakistan managed to get more than Rs 4 trillion in revenue.
He said that for the first time since the 1960s, a government has drawn upa comprehensive and sustainable roadmap for the economy. Efforts will bemade to collect revenue of Rs5800 billion in the next financial year and1.5% turnover tax will not be applicable in special economic zones. He saidincentives will be given to agriculture, industry, value added sector andIT. Revolving credit will be phased out.
Addressing a webinar titled, “Budget 2020: Balancing Stability and Growth”organized by Institute of Policy Reforms, the minister said the governmenthad already constituted an Economic Advisory Council (EAC) to evolvedevelopment strategies with the help of experts to ensure sustainablegrowth of about 12 different sectors.
He said that the Economic Advisory Council (EAD) in leadership of Adviserto Prime Minister on Institutional Reforms and Austerity, Dr Ishrat Hussainwould give his findings to the government within a week for achieve theagenda of sustainable growth in the country.
The minister said Pakistan needed inclusive and sustainable growth as fewregional countries were experiencing so, he added, a planned roadmap wasbeing developed which the current and successive governments would followto have consistency in the planning process.
He called it an economic paradigm shift that was the first time thegovernment was making such a comprehensive roadmap for development of theeconomy since the sixties.
The minister said enhancing revenue collection would be the top priority ofthe government, adding that currently the revenue collection was less than10 percent of Gross Domestic Product.
Shaukat Tarin said that our main focus was on economic growth to achievethe agenda of poverty reduction and provide employment opportunities to thepeople.
He said the measures already adopted by the government boosted revenuesbeyond Rs 4 trillion benchmark till now, which he termed historic, hopingto raise it to around Rs5. 8 trillion during the next fiscal year.
The minister said that the government is committed to achieve the revenuegrowth of Rs. 5.8 trillion to Rs 6 trillion for decreasing the fiscaldeficit and providing more resources for economic development in thecountry.
Read Top Stories
The government had not imposed any new tax in the upcoming budget 2021-22but it would broaden the tax base with use of technology to reachunreachable areas and increase revenues.
The minister said the incumbent government would not put more burdens onthe taxpayers and tariff would not be further increased.
Prime Minister Imran Khan had great sympathies for poor people and he didnot want to burden them, Tarin said.
He said the current upward trend in inflation was due to increase in foodprices and the government was making all out efforts to reduce it.
The minister said the government would enhance funding of the Public SectorDevelopment Programme (PSDP) to Rs 900 billion and this time projects wouldbe launched with Public Private Partnerships to promote growth. Likewise,he added, agriculture was another prime focus of the government.
He lamented that Pakistan was converted from food-exporting tofood-importing country, so the government’s focus would be on reversingthis trend.
He said there was also a need to focus on all agriculture chains, addingthat a progressive plan was being put in place with a number of incentivesfor agriculture reforms.
Shaukat Tarin said that the government is fully focused on the foodinflation and to restrain the food inflation, “We need to enhance theagriculture production in the country.”
He said the government was also focusing on making industry more efficientto enhance exports manifold. He was of the view that the government is alsofocused on the power sector for resolving the main challenge of circulardebt.
Minister said the government prioritizes controlling the electricity pricesthrough lower power tariff for providing relief to the domestic consumersas well as the industrial sector.
Source:link