Fiscal, trade deficit, low investments hindering economic growth: Asad Umar

ISLAMABAD, Jan 24: Finance Minister, Asad Umar while addressing a press conference here Thursday enumerated three main problems Pakistan was facing at economic front that result in unsustainable economic growth over a long period of time.

The press conference followed the presentation of economic reforms package at the National Assembly. The minister was flanked by Adviser to PM for Commerce, Textile and Industry Production Razzak Dawood, Minister of State for Revenue, Muhammad Hammad Azhar and other officials of the ministry.

The minister identified the budget deficit as one of the major causes of economic problems, saying that the expenditures of the government were exceeding the revenue collection.

The minister said that similarly another major challenge was the increasing trade deficit as the country was exporting less compare to imports.

He said that third issue the country was facing that investment to GDP ratio was as low as 15-16 percent which needed to be enhanced upto 25-30 percent but added that only investments would not help overcome economic problems, there is need of national savings.

The minister was of the view that Pakistan was lagging behind in economic growth and there were just a few counties which are now behind Pakistan in growth, so there is need to work hard to put the country on development path.

He said that the new journey of economy growth and development has started with the announcement of reform package.

The minister said that the uncertainty in drawing rooms and TV talk shows was vast, but it does not reflect actual situation.

(APP)