Confidence of investors increasing on Pakistan as a result of its march towards stability: Finance Minister Muhammad Aurangzeb

ISLAMABAD, May 07 (SABAH): Minister for Finance Muhammad Aurangzeb has said the confidence of investors is increasing on Pakistan as a result of its march towards stability.

Addressing a news conference along with Law Minister Azam Nazeer Tarar and Minister for Information and Broadcasting Attaullah Tarar Advocate in Islamabad on Tuesday, Muhammad Aurangzeb said the visit of Saudi delegation remained very successful. He said the Saudi delegation evinced confidence in Pakistan’s economy.

The Finance Minister said the country is heading in the right direction. The agriculture is witnessing growth of five percent on the back of bumper crops. He said the foreign exchange reserves have exceeded nine billion dollars while inflation has reduced from thirty-eight percent to seventeen percent and it is gradually coming down.

Muhammad Aurangzeb said the IMF team is expected to visit Pakistan this month during which the contours of a larger and longer program will be discussed. He said our focus is to ensure macro-economic stability and structural reforms.  

The Finance Minister emphasized the need for enhancing the tax to GDP ratio to thirteen to fourteen percent. He said reforms in the energy sector will be carried out and losses of state owned enterprises will be reduced.

Muhammad Aurangzeb also stressed the need for reducing expenditures.

Referring to the pension liability, the Finance Minister said service structure will be changed over a period of time to reduce its burden.

The Law Minister clarified that pension reforms will be across the board and will be carried out by taking the parliament on board. He said a committee headed by the Finance Minister is working on these reforms.  He said pension reforms will also require legislation.

Information Minister Attaullah Tarar said recommendations have been sought to reduce the burden of pension. He said matters pertaining to the length of service are being discussed and there is a proposal to apply it on all the institutions. He assured that once these matters are finalized, the public will be informed accordingly.