Minister derives satisfaction from falling inflation

ISLAMABAD: Finance Minister Muhammad Aurangzeb has said Pakistan’s ongoing programme with the International Monetary Fund (IMF) would be the last, provided the government executes the agreed structural reforms.

Speaking at the launch of the Pakistan Economic Dashboard on Wednesday, the finance minister highlighted key economic progress and stressed the need for structural reforms to ensure sustainable stability. Inflation has decreased more than the government was expecting, said the minister, adding that continued efforts are needed to maintain this trajectory.

The minister also pointed out that tax filer numbers have increased, and the government aims to further raise the tax-to-GDP ratio. We need to focus on increasing our tax base to achieve long-term economic stability, he added.“Our economy is heading in the right direction, and we must capitalise on this momentum by implementing necessary reforms,” he added.

Lowest reading since Jan 2021: inflation in Pakistan clocks in at 6.9% in September 2024

The minister further said that the government has no desperation to borrow, and when it needs to, it will borrow on its own terms. For the banking sector, the message is clear that they need to start lending to the private sector, as Prime Minister Shehbaz Sharif’s administration believes that the government is there to provide policy framework and the private sector can lead the country, he added.

When it come to the business community and sector, it’s not about policy rate it’s the KIBOR and that is the benchmark which is used, said the minister, adding that they need to leverage and to ensure that this macroeconomic stability which came in the country to show that they continue with the structural reforms.

He said that for the longest time, it is known that the country needs to increase tax to GDP, energy sector reforms, SOEs reforms and going towards privatisation, but it never happened. It is a fantastic opportunity that we utilise this moment and it is a defining moment for the country that we go with vigor in terms of structural reforms.

Talking about the Pakistan Economic Dashboard, the minister said that the point is what do you do with data. In the first instance, it cannot be just raw data. It has to be done through data analytics and for that need an interactive platform like this, he said, adding that it provides transparency.

Minister of State for Finance and Revenue Ali Pervaiz Malik said that “Pakistan Economy Dashboard” is a huge initiative in the direction of making the socio-economic data easily accessible to everyone.

By adopting such innovative platforms, we are setting a precedent for how data-driven governance can drive real, impactful change in our country, he said.

He said this initiative marked a significant milestone in our ongoing efforts to promote transparency and enhance the accessibility of economic data, particularly, for academia and research institutions.

On the other hand, the internal section of this portal will empower the Finance Division with real-time access to economic data and outlook, thereby, strengthening the evidence base for our policymaking, he said.

Copyright Business Recorder, 2024