March 29, 2024 (MLN): Pakistan’s economy started in a better way in 2024 with improvement in key economic indicators, said Federal Minister Muhammad Aurangzeb in his speech at the gong ceremony on his visit to the Pakistan Stock Exchange (PSX).
The Finance Ministry, in collaboration with the Law Ministry and the Federal Board of Revenue (FBR), is taking decisive steps to address tax revenue leakages and expand the tax base.
One of the major concerns for the economy is tax leakages and pending cases worth Rs1.7 trillion.
The Finance Minister stated that despite the decision going against the FBR. the government will try to address the issue of pending cases within 3 months.
Minister Aurangzeb also shed light on the successful completion of the International Monetary Fund (IMF) review and hinted at potential future linkages.
To note, the cash-strapped nation urgently needs a longer and larger new program to meet its high debt obligations
Moreover, he said that the government is actively working on reforms across various sectors, including state-owned enterprises (SOEs), privatization, energy, and taxation. He stressed the pivotal role of the private sector in driving economic progress.
The Finance Minister expressed his appreciation for the capital market's role in fostering economic development.
He assured that the government, in partnership with the Securities and Exchange Commission of Pakistan (SECP) and Self-Regulatory Organizations (SROs), will work towards creating a regulatory environment conducive to economic expansion.
A key focus for the government will be enhancing market efficiency, transparency, and investor protection. The Ministry of Finance is set to collaborate with the capital market to improve access to capital for small and medium enterprises (SMEs).
The minister lauded the Chinese partnership and its stakeholding in Pakistan's capital market, acknowledging the importance of Chinese investments.
He emphasized that increased cooperation between the PSX and Chinese exchanges will be instrumental for the economic development of Pakistan and the mutual interest of both countries.
Pakistan and China have intensified efforts to establish a Working Group on five new Economic Corridors under phase 2 of the CPEC, aligning with the 5Es framework already prepared by the Planning Ministry.
According to the Finance Minister, the second phase of CPEC essentially involves monetizing the investments made in the first phase of CPEC.
To provide foreign investors with the appropriate climate for investing, infrastructure development will occur through public-private partnerships and not solely through the PSDP.
Concerning the investor portfolio in the Pakistan Stock Exchange (PSX), Muhammad Aurangzeb stressed that currently there are only 300,000 investors in the stock market, citing an urgent need to attract more investors.
He further noted that the agriculture sector has shown significant performance, posting a growth of 5%, especially with improved production in rice and wheat.
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Posted on: 2024-03-29T10:18:34+05:00
