Pakistan’s economy has a growth potential of 4% per year: Moody’s – Business

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Published on May 30, 2021 6:12 p.m.

Report says there is a possibility of higher growth rates in the future

ISLAMABAD (Dunya News) – International rating agency Moody’s said in its report that the Pakistani economy has the potential to grow at an annual rate of 4%.

The Moody’s report states that the Pakistani economy has the potential to grow at more than 4% per year and that increasing the growth rate of LSM will further boost the overall economic performance of the country.

The report states that there is a possibility of higher growth rates in the future after achieving economic stability.

On the other hand, Federal Finance Minister Shaukat Tareen said that the pursuit of comprehensive and sustainable growth is one of the main priorities of the current government, adding that for the first time in 10 months, Pakistan has succeeded in get over 4 trillion rupees. In income.

He said that for the first time since the 1960s, a government has developed a comprehensive and sustainable roadmap for the economy. Efforts will be made to collect revenue of Rs 5800 billion over the next fiscal year and the 1.5% turnover tax will not be applicable in special economic zones. He said incentives will be given to agriculture, industry, value-added sector and information technology. Revolving credit will be phased out.

Addressing a webinar titled “Budget 2020: Balancing Stability and Growth” hosted by the Institute of Policy Reforms, the minister said the government has already established an Economic Advisory Council (EAC) to develop development strategies with the help of experts to ensure the sustainable growth of around 12 different sectors.

He said the Economic Advisory Council (EAD), which heads the Prime Minister’s adviser on institutional reforms and austerity, Dr Ishrat Hussain, would give its conclusions to the government within a week to achieve the country’s sustainable growth agenda. .

The minister said Pakistan needs inclusive and sustainable growth as few countries in the region therefore have, he added, a planned roadmap being developed that current and successive governments will follow. to ensure consistency in the planning process.

He called it an economic paradigm shift which was the first time the government had established such a comprehensive roadmap for the development of the economy since the sixties.

The minister said improving revenue collection would be the government’s top priority, adding that currently revenue collection was less than 10 percent of gross domestic product.

Shaukat Tarin said that our main goal is economic growth to realize the poverty reduction program and provide employment opportunities to the people.

He said the measures already taken by the government had raised revenues beyond the benchmark of Rs 4 trillion so far, which he called historic, in the hope of bringing them up to about 5 rupees. 8 trillion in the next fiscal year.

The minister said the government is committed to achieving revenue growth from Rs. 5.8 trillion to Rs 6 trillion to reduce the budget deficit and provide more resources for the economic development of the country.

The government had not imposed any new taxes in the upcoming 2021-2022 budget, but it would broaden the tax base through the use of technology to reach inaccessible areas and increase revenues.

The minister said the government of the day would not impose more burdens on taxpayers and tariffs would not be increased further.

Prime Minister Imran Khan had great sympathy for the poor and he did not want to overwhelm them, Tarin said.

He said the current upward trend in inflation was due to rising food prices and the government was making every effort to reduce it.

The minister said the government will increase funding for the Public Sector Development Program (PSDP) to Rs 900 billion and this time projects will be launched with public-private partnerships to promote growth. Likewise, he added, agriculture was another main objective of the government.

He lamented Pakistan’s shift from being a food-exporting country to a food-importing country, so the government would focus on reversing this trend.

He said there was also a need to focus on all agricultural chains, adding that a phased plan was being put in place with a number of incentives for agricultural reforms.

Shaukat Tarin said the government is fully focused on food inflation and to contain food inflation, “We need to improve agricultural production in the country.”

He said the government is also focusing on improving the efficiency of the industry to improve exports. He was of the opinion that the government is also focusing on the power sector to solve the main challenge of circular debt.

The minister said the government is prioritizing controlling electricity prices through lower electricity tariffs to relieve domestic consumers as well as the industrial sector.


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