ISLAMABAD: Pakistan’s Finance Minister Ishaq Dar has reiterated the government’s commitment to introducing reforms in various sectors to set the economy on a positive trajectory and achieve economic stability and growth.
Ishaq Dar made these remarks while chairing a meeting of the Reforms and Resource Mobilisation Commission (RRMC) in Islamabad.
During the meeting, the finance minister discussed the current economic and financial outlook of the country and appreciated the commission’s efforts in identifying issues and challenges in the existing taxation system. He also commended the commission’s role in providing valuable suggestions for reforms in revenue policies to achieve sustainable economic growth and ease of doing business.
Commission discusses suggestions for tax reforms
The commission discussed various suggestions for business-friendly tax reforms and agreed to interact with all stakeholders to devise a comprehensive strategy. The government hopes that these reforms will create a more conducive environment for businesses and attract foreign investment.
However, the government’s efforts to stabilize the economy have been hampered by several challenges, including last year’s devastating floods, rising inflation, a current account deficit, and a foreign exchange crisis. According to the Asian Development Outlook (ADO), the economic growth of Pakistan slowed by 0.6 percent in FY2022-23 as the economy struggled to recover. The ADO estimates Pakistan’s economic growth up to 2 percent in the current ongoing fiscal year, and inflation is projected to more than double from 12.2 percent in FY2021-22 to 27.5 percent this fiscal year.
In light of these challenges, the government has been seeking assistance from international financial institutions such as the International Monetary Fund (IMF) and the Asian Development Bank (ADB) to bolster the economy. Despite these challenges, Finance Minister Ishaq Dar remains optimistic that the government’s reforms will help set the economy on a positive trajectory and promote sustainable economic growth.
The government’s efforts to introduce business-friendly tax reforms and attract foreign investment are critical to creating jobs and boosting economic growth. The government must address the challenges posed by inflation and foreign exchange to achieve its economic goals and ensure that the economy remains on a positive trajectory.
