Economy stabilising, but boom and bust cycle must be avoided, says finance minister

ISLAMABAD: The government is in the process of implementing a reform agenda for economic sustainability, said Finance Minister Muhammad Aurangzeb, while addressing a press conference here on Wednesday.

“Economic stability is bearing fruit. The economy is moving towards stability,” he reiterated, adding that reducing human intervention in the Federal Board of Revenue (FBR) by increasing incorporation of technology is also part of the reform agenda.

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“The authority of tax policy has now been transferred from the FBR to the Finance Division,” Finance Minister said.

He shared that export-based economic development is the priority of the current government. “The private sector will have to come forward for economic stability. Right sizing is being done to reduce government expenditure and we are also taking suggestions from traders for the upcoming budget,” Muhammad Aurangzeb said, adding, “No suggestion will be rejected. All will be seen”.

He said that the International Monetary Fund (IMF) commission is arriving in Pakistan next week, which will review the first six months since the program has started.

He said that while economic sustainability is returning to the country, the situation at hand is not new. “We cannot go towards boom and bust cycle again. It is easy to pump in liquidity and then tell everyone that we are leaving,” he said, adding, “We have reached four percent growth but since we are dependent on imports, the payment problem continues to exist”.

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The finance minister said that Pakistan has repeatedly gone to the IMF to avoid default. He said that the textile sector should not be shouldering the responsibility of exports alone. “Every sector will have to contribute to increasing exports,” Muhammad Aurangzeb said.