Saturday, February 8, 2025

Top 5 This Week

Related Posts

Long-Term Stability Takes Priority Over Short-Term Relief, Says Khurram Schehzad at Economic Outlook Workshop

GOVERNMENT OF PAKISTAN
PRESS INFORMATION DEPARTMENT
REGIONAL INFORMATION OFFICE
KARACHI

Long-Term Stability Takes Priority Over Short-Term Relief, Says Khurram Schehzad at Economic Outlook Workshop

Karachi: Advisor to Finance Minister Mr. Khurram Schehzad delivered an insightful presentation at a workshop titled “Economic & Debt Outlook 2025”. The presentation included detailed overview of the measures taken by Finance Ministry’s Debt Management Office to stabilize and strengthen the country’s economy. Underscoring the action plan of Finance Ministry Mr. Khurram Schehzad said that we are making efforts to manage fiscal imbalances and optimize finances for long term sustainability.

He pointed out the adopted approach of enhanced revenue mobilization and expenditure rationalization which will lead towards structural reforms to optimize public finances. While discussing the key takeaways of the ministry’s strategy the advisor informed that Pakistan has recently marked first budget surplus in two and a half decades, primary surplus is almost double of the full year target. He maintained that tax shortfall is bridged by reduced cost of debt.

“We are preferring long term stability over short term relief measures”, Khurram Schehzad added. He lauded SBP on increasing the foreign exchange reserves by buying dollars from the local market. The advisor also mentioned the ongoing projects of Panda Bond and Green Bond whereas SBP will also launch an investment platform.

He highlighted the significance of “rightsizing” to cut budget expenditure. “There are 43 Federal Ministries and more than 400 departments which needs to be reduced”, Khurram said. Education, Health, IT and many ministries are devolved to the provinces so they should be abolished from federal government by which the government will be able to cutdown PKR 870 bn. The long-term threat to fiscal imbalance is pension therefore multiple pension schemes have been abolished.

The advisor added that privatization and deregulation of several entities are under consideration which include PIA, House Building & Finance Corporation, DISCOS, State Life Insurance Corporation, First Women Bank Limited and Zarai Tarrqiati Bank Limited. He contended that National Fiscal Pact is finalized with provinces for agriculture tax, KPK has already started following it, Punjab and Balochistan are also onboard whereas discussion with Sindh Government is underway.

Khurram Schehzad further added that non filer citizens are enjoying an amnesty so in near future there will be no category for non-filers, everybody has to pay their taxes and file their returns. Return filing process will also be made simpler. “There are 190,000 people whose tax liabilities are Rs 1.6 trillion”. He also discussed the Tax Laws (Amendment) Bill 2024 to enhance compliance and restrict economic activity for non-filers.

Popular Articles