Finance Minister Shaukat Tarin has said that after completing the current International Monetary Fund (IMF) programme, Pakistan is hoping to end reliance on the multilateral lender if the country achieved sustainable economic growth.
“I think this programme should be enough. If we start generating 5%-6% balanced [economic] growth, then I don’t think we need another IMF programme,” Tarin said in an interview with Bloomberg on Thursday.
His statement comes a day after the executive board of the IMF revived Pakistan’s $6 billion Extended Fund Facility (EFF) programme, paving the way for the disbursement of about $1 billion tranche.
Tarin said despite commodity price shocks in the international market, the economy of the country would grow by 4.5 per cent to 5 per cent during the current fiscal year and by 6 per cent next year.
“I am still hoping that it (growth rate) could be 5 per cent. It could be between 4.5 to 5 per cent,” the finance minister said, adding that the next year (2022-23) GDP would go up to 6%.
He said that in the beginning, the growth was overshooting as exports were high; remittances had also increased, tax collection had gone up by 32 to 35 per cent, utilisation of electricity had gone up by 13 per cent whereas the corporate profits were at historic high.
“We will be doing more than 5 per cent given the fact that last year’s growth comes now with the rebasing of the economy at around 5.57 per cent,” he remarked.
Tarin said that since he became finance minister last April, the country had done a lot of consolidation through the IMF programme.
He said, the country also had to face the challenge of Covid-19 and then the government focused on inclusive and sustainable growth. “We did whatever we had to in terms of giving incentives to our industry. Also putting a lot of money in agriculture and housing,” he added.
The Federal Minister for Finance and Revenue Shaukat Tarin on Thursday asked China to invest in Pakistan’s Special Economic Zones (SEZs).
Train said that Prime Minister Imran Khan’s visit to China is important both politically and economically.
“China is establishing its industry in other countries so we will request Beijing to relocate its industry to Pakistan. Our special economic zones are ready and if China invests in these zones then it would be a win-win situation, ” he said.
He also said that the prime minister will ask China to help in Pakistan’s Agriculture Transformation Plan. “Agriculture is very important for us and our economy depends on agriculture growth, ” he added.
The minister also said that the IMF has approved Pakistan’s economic strategy and the approval of the $1 billion sixth tranche by the international fund will bring economic stability in the country.
Prime Minister Imran Khan is currently on a three day visit to China to meet Chinese President Xi Jinping with a list of measures aimed at seeking China’s support in stabilisation of Pakistan’s ailing economy.
Economic agenda is expected to be at top of Khan’s priorities as Khan would sit down with the political elite of China.
