Govt to introduce reforms for economic stability, growth: Dar

Finance Minister Ishaq Dar said Saturday that the government is determined to introduce reforms in various sectors to put the economy on a positive trajectory and achieve financial stability and growth.

The finance minister made the remarks while presiding over the meeting of the Reforms and Resource Mobilisation Commission in Islamabad. He highlighted the current economic and financial outlook of the country.

Dar appreciated the efforts of the commission in recognising issues and challenges in the existing taxation system.

He also hailed the commission's role in devising valuable suggestions for reforms in the revenue policies for resource mobilization, ease of doing business, and taxpayer facilitation to achieve sustainable economic growth.

The meeting deliberated upon the suggestions being put forward by the Commission and agreed to come up with business-friendly tax reforms after interacting with all the stakeholders.

'Robust reforms'

Earlier this month, the Asian Development Bank (ADB) said in a report that Pakistan’s economic growth is expected to slow significantly in FY2023 (ends 30 June 2023) in the wake of last year’s devastating floods, ballooning inflation, a current account deficit, and an ongoing foreign exchange crisis.

According to the Asian Development Outlook (ADO) April 2023, ADB’s flagship economic report, Pakistan’s gross domestic product (GDP) growth is projected to slow to 0.6% in FY2023 from 6% last fiscal year as the economy struggles to recover.

Growth is forecast to rise to 2% in FY2024, assuming the resumption of macroeconomic stability, implementation of reforms, post-flood recovery, and improving external conditions.

"Pakistan’s economy continues to face strong headwinds while last year’s catastrophic floods have exacerbated the economic and financial challenges,” said ADB Country Director for Pakistan Yong Ye.