In a recent meeting of Prime Minister's Business Persons Council (BPC) with the President Asif Ali Zardari at Presidency, Dr Baig as a member of PM Business Persons Council, advised President and the economic team that the government did fairly good on the external sector of our economy.
Our exports will be increased and would surpass target with estimated export of $22 billion. Record remittances of about $1 billion every month and total remittances this year may increase $11 billion. Our foreign reserves touched first time about $18 billion keeping rupee stable. He informed that for the first time we have showed surplus current account instead of current account deficit last year. Due to increase in export we have narrowed our trade deficit.
Dr Baig informed President and the economic team including finance, commerce, petroleum, water & power ministers, Governor State Bank, Chairman FBR, Planning Commission, and federal secretaries that our performance on internal sectors is not up to the mark. We have not been able to control the inflation. Due to the higher banks lending rate severe power and gas load-shedding and poor law and order situation, there is no new investment and industrialisation taking place seizing new job opportunities. The banks are keeping high 7 percent to 8 percent cushion and spread on their lending rates and no industry is viable at 17 percent and 18 percent mark-up. He advised Governor SBP to review tight Monetary Policy to reduce banks lending rates.
Dr Baig advised President and the economic team that to increase our GDP, our policies should be growth oriented and to generate revenue rather than collecting revenue. He added that with the growth not only new jobs will create but government will also get additional revenue.-PR
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