Finance Minister Gives Three Years Macro-Economic Roadmap

The Federal Minister for Finance Senator Mohammad Ishaq Dar addressed the participants of the 16th National Security Workshop on the topic “Economic Policy of Pakistan” at the National Defense University on Friday.

Addressing the participants the Finance Minister said that fiscal consolidation, Power Sector Reforms, Gas Sector Reforms, Privatization Programme, Debt Management Strategy and Monetary Management are our top priorities. Discussing the macro-economic stability plan for the next three years the Minister said, we have clearly set our targets. We shall take the GDP growth rate to 7%, industrial growth to 8%, fixed investment to GDP ratio to 22%, fiscal deficit(as % age of GDP) 4%, public debt(% of GDP) under 57% ,and inflation under 8%. We will also bring tax to GDP ratio to 15%, exports to$32 billion, foreign direct investment to $5.5billion and we have a commitment to take the foreign exchange reserves to $ 20 billion by the year 2017-18, the Minister added.

Deliberating on how these targets would be achieved, the Minister said the above can be achieved through democratic governance which requires supremacy of the Constitution and rule of law in order to reduce corruption, avoiding tax evasion, wasteful expenditure and misuse of power. We wish to follow sound macroeconomic policies to reduce fiscal and current account deficits, curb inflationary pressures and increase foreign exchange reserves. The Minister emphasized full exploitation of the technological potential in industry,  agriculture and information technology and optimum utilization of the country’s physical and economic resources for a better economic future of the country.

Ishaq Dar made special mention of National Power Policy 2013-18. He said it focuses on improved governance structure, supportive legal framework, financial sustainability, supply-demand side management and promoting private sector participation in the sector. He said implementation of this policy will help improve the governance and financial viability of power sector.

Concluding his address, the Minister said Pakistan is a nation of 180 million strong, hard-working and intelligent people capable of occupying a respectable position in the comity of nations. However, Pakistan has had many failed attempts to break out from the vicious cycles of on-and-off process of economic development in the last 67 years. The first and primary element of our vision is to permanently break the vicious cycle, and to put the economy on a sustainable path of economic prosperity.

A large number of guests including parliamentarians, senior civil and military officials, business leaders and members of the civil society attended the work shop.