Country is on the path of sustainable long-term growth: Finance Minister

Islamabad: Finance Minister Senator Muhammad Aurangzeb says that the economy is moving out of the stagnation phase and moving towards export-led growth and the country is on the path of sustainable long-term growth.
In an interview with the American magazine USA Today, Finance Minister Senator Muhammad Aurangzeb said that Pakistan has reached an important economic turning point. With the continuation of economic stability, reforms and policies, confidence is being restored at the domestic and global levels. The economy is moving out of the stagnation phase and moving towards export-led growth.
The Finance Minister said that new opportunities are emerging for local and foreign investors and the country is on the path of sustainable long-term growth. Pakistan has started the fiscal year with better economic fundamentals, achieved primary budget surplus and current account surplus, which is a clear sign of breaking out of the cycle of continuous deficits.
Senator Muhammad Aurangzeb said that the significant increase in remittances was the main reason for this improvement, inflation has come down from the highest level of 38 percent to single digits and foreign exchange reserves have exceeded $14.5 billion, the stability in the exchange rate has restored investor confidence.
He said that economic stability is an essential foundation, but sustainable development is the real challenge, the 2.7 percent economic growth in the last fiscal year is certainly positive, economic growth is insufficient to meet the needs of the rapidly growing population, the government is moving away from the consumption, debt-based development model and adopting an export-based strategy.
He said that the current budget includes tax reforms, improvements in the energy sector, reform of government institutions, tariff reforms, the aim is to eliminate the decades-long protectionist system and increase global competitiveness.
The Federal Finance Minister said that Pakistan is aligning its economic strategy with changes in global demand. IT exports have exceeded $4 billion. IT exports can double in 5 years with appropriate policy continuity. Steps are also underway to simplify the tax system for exporters and reduce administrative hurdles.