Islamabad: Federal Finance Minister Senator Muhammad Aurangzeb has said Pakistan achieved economic stability through difficult decisions and the government will not allow the country to return to a recurring boom-and-bust economic cycle.
Addressing an event in Islamabad, Aurangzeb said tax collections by the Federal Board of Revenue had increased significantly, with FBR revenues rising by 40% over recent years.
According to the finance minister, the FBR’s tax-to-GDP ratio increased from 8.8% to 10.3%, while the overall deficit declined from 12.5% to 2.6%.
He said the economic stability achieved through difficult decisions must now be made sustainable, adding that Pakistan needs to move from stabilisation towards lasting economic growth.
Aurangzeb stressed the need to continue structural reforms and enable the private sector to take a leading role in the country’s economy.
He said mobilising private capital was critical for economic growth, while public-private partnerships and privatisation could help attract further investment into infrastructure and public services.
The finance minister said transparency, efficiency and investor confidence would remain priorities in the privatisation process, while cooperation between the government and private sector needed to be strengthened.
Aurangzeb said the government aims to raise the tax-to-GDP ratio to between 11% and 12% in the short term.
He added that Pakistan’s IT services exports reached $4.6 billion in the previous fiscal year, including $1.6 billion contributed by freelancers.
Goods exports remained around $30 billion, he said, adding that further progress was needed in the sector.
The finance minister said reforms were continuing across the energy, state-owned enterprises, taxation and privatisation sectors, while measures were also being taken to facilitate investment.
