Govt doesn’t want to force regulations, seeks private sector’s input: Aurangzeb

ISLAMABAD: Pakistan’s economy is moving towards stability, said Finance Minister Muhammad Aurangzeb while addressing a stakeholder session on insolvency and debt enforcement.

Pakistan has overcome the deficit, Finance Minister said, adding that a market-based exchange rate is currently in effect in the country. “Foreign exchange reserves are sufficient for two and a half months of imports,” he added.

Speaking on the private sector’s significance for the overall economic development, the finance minister said that the government is encouraging the private sector to make contributions. “The government wants to bring the private sector forward,” he said.

The finance minister said that countries go through difficult times and then recover, it is not an uncommon phenomenon in the world. However, it takes effort to come out of such situations. He said that doing business is private sector’s prerogative, the government will not be involved in doing business.

“The government will provide full support to the private sector [in their business endeavours],” Muhammad Aurangzeb said, adding that the government wishes to move forward with consultations with the private sector.

Aurangzeb highlights key reforms in public finance and taxation following IMF visit

In his speech, the finance minister addressed the banking sector, urging them to prioritise the rehabilitation of institutions that have gone bankrupt. He said that the banks should take steps to help those organisations revive before going to the court for bankruptcies.

Muhammad Aurangzeb said that the Finance Ministry does not wish to force regulations, rather the government wants private sector to work in tandem with the government and give advice and recommendations.

He said that it is his hope that such stakeholder consultations would yield valuable insights for Pakistan’s economic future.

ECONOMIC OUTLOOK

Earlier, in November, Finance Minister Aurangzeb had shared the details of recent reforms. He said that the National Fiscal Pact 2024 has been implemented in the country, and the Agriculture Income Tax is being pursued by all four provinces.

He also shared the recent successes in obtaining climate financing and more efforts being made in this regard. The macroeconomic indicators are improving, the foreign exchange reserves are rising and the inflation has come down notably, the finance minister had said.