ISLAMABAD: Finance Minister Muhammad Aurangzeb has claimed that the inflation rate has decreased by 18% and said that the inflation rate has dropped from 38% to around 20%.
According to the report of Geo News, the finance minister is on a visit to Washington along with a delegation to negotiate a new bailout package from the IMF. Speaking at the Washington Atlantic Council, the Finance Minister said that Pakistan’s GDP was overall in a positive direction.
During the conversation, Finance Minister Muhammad Aurangzeb said that the growth rate of Pakistan’s agricultural GDP is 5 percent while the services sector was developing. During the current financial year, the economic situation of the country also improved. We successfully completed the IMF program.
The Federal Finance Minister said, “Our discussion with the IMF officials was positive. Pakistan is taking steps to increase tax revenue. Not only that the inflation rate close to 20%, but the exchange rate has also remained stable, and the government will continue to bring economic reforms.”
Muhammad Aurangzeb said, “We will discuss the loan extension program with the IMF. Experience in the private sector will be utilized for economic stability. Tax-to-GDP ratio will go up to 15% from 10% at present, investment will also have to increase.”
He said that Pakistan has to control circular debt by increasing its exports. The privatization agenda also needs to be implemented. The government signed an agreement with the IMF, that Pakistan would need a period of 2 to 3 years for structural reforms, he added.
It is necessary to restore the confidence of local investors. The finance minister said that it is necessary to collect tax from the sectors that were not part of the tax net earlier. Efforts are being made to include as many people as possible in the tax net. During his visit to America, the Finance Minister also met the delegation of the Pakistan Business Council.
