Last Updated on: 6th July 2023, 09:55 am
Finance Minister Shaukat Tarin said Sunday that at the current rate of growth, the country can expect growth of 5% in fiscal 2022 and more than 6% in fiscal 2023.
At a press conference in Islamabad, he said that based on the latest indicators, the government had announced an expected growth rate of 3.94%. He said the government’s focus from now on will be on creating price stability, thereby lowering inflation, to give people much-needed relief. “It is Imran Khan’s promise to the people that prices will go down.”
The finance minister also spoke about how long the agricultural sector has been neglected. “The country suffers from malnutrition,” he said.
Also Read: Moodys says Pakistan sees strong long-term GDP growth
Finance Minister Shaukat Tarin praises “Team Imran Khan” for “Strong Growth of V”
The 2021-22 budget will be presented on June 11th
Speaking of the government’s efforts to date to get the economy out of the quagmire it was in, he said the country ran a $20 billion deficit in 2018 and the country simply didn’t have the dollars necessary to run its Cover deficit.
A strong V growth despite being in a tough IMF program, which was necessitated by unsustainable current account deficit and falling foreign currency reserves, and a vicious Covid 19.
Well done team Imran Khan👍 @FinMinistryPak @GovtofPakistan— Shaukat Tarin (@shaukat_tarin) May 22, 2021
“The country was forced to go to the IMF (International Monetary Fund),” he said, adding that the global lender set very strict terms this time around.
Even under difficult conditions, the government paid special attention to housing, agriculture, and export-oriented industries, which led to economic stability and growth.
The finance minister referred to the measures that the government has planned for the next financial year. He said that a long-term, short- and medium-term strategy will be developed in 12 sectors.
Short-term measures include the adoption of measures in the agricultural sector to improve food supplies and to set up storage and cold rooms.
“Speculators and illegal hoarders must be treated strictly,” he added.
Also Read: Hungarian Foreign Minister says, FATF makes decisions for political reasons
Tax Collection
Regarding the collection of revenue, he said the government will use the technology to expand the fiscal network.
“We will not use force, we will encourage people to pay taxes and provide them with facilities,” said the minister. He said the government had already cut sales tax and oil tax.
“We will not charge any fees. The tariffs will not increase. This is our promise,” said Finance Minister.
Exit the FATF gray list
The finance minister also spoke of the country’s withdrawal from the gray list of the Financial Action Task Force (FATF). He said the IMF program did not set any conditions for Pakistan’s removal from the list. He said there was only one condition to be met now.
Also Read: FATF Declares To Keep Pakistan Remain On Grey List Till February
Tax / GDP Ratio
At the time of the current award by the National Finance Commission, the tax rate according to Tarin was 8.8%. The GDP tax under NFC cannot increase 1% per year, he said, adding that the center and provinces have not taken adequate action.
“To solve the financial problems, the index has to rise to 18-20%,” said the finance minister.
