ISLAMABAD: Finance Minister Ishaq Dar on Saturday said that Pakistan faced a “deep and steep” economic vulnerability, which the country has successfully overcome, resulting in a halt to “any further decline” as he addressed a post-budget press conference here in Islamabad.
The media interaction comes a day after Dar presented the 2023-24 federal budget having a total outlay of Rs14.46 trillion, also projecting Gross Domestic Product (GDP) growth rate at 3.5 percent.
At the outset of the interaction, Dar provided a comprehensive explanation of the budget. He underlined the government’s objective to reverse all economic losses, adding that the government’s first objective was to go back to achieve 2017 economic indicators.
He was of the view that proper and transparent implementation of the PSDP would facilitate the attainment of a 3.5 percent growth rate with ease. The minister acknowledged the vulnerability faced by the country but added that efforts had been made to prevent further decline. He said it should be a national goal to steer Pakistan towards the path of development.
The minister said the government has a plan to bring about an agricultural revolution, underlining that the country possessed significant untapped potential in this sector.
Dar highlighted that debt servicing constitutes one of the largest chunks of the budget. He said efforts would be made to reduce this burden and reverse the prevailing trend.
He highlighted that employment opportunities would increase, leading to the correction of macroeconomic indicators, a reduction in inflation, and creation of more jobs. Consequently, the policy interest rate would also decrease, he hoped.
Ishaq Dar described the budget as being different from traditional ones, arguing its focus was on progress linked to economic growth. The minister said that ad-hoc relief measures should not create an impression that something unprecedented has been done for the first time.
He said there had always been a plan to make Pakistan self-sufficient and self-reliant. He stated that Pakistan will not default. He said dignified nations should take proactive measures to prevent economic defaults, noting that Pakistan had also followed the same approach.
Allocation for general elections
Replying to a question, the minister clarified that no government members had made any statements regarding delay in general elections. He explained if any coalition member has made such a statement, it was within their right to express their views.
Dar emphasised that the budget allocation for general elections was made after consultations with the Election Commission of Pakistan (ECP). He said that the government could not dictate its coalition partners and bar them from making statements.
Dar said funds have been allocated for general elections and stressed the need for holding them on time. He explained that the government has no ill intentions on the subject.
Regarding subsidies, the minister acknowledged that the government had provided numerous subsidies. He specifically mentioned that over Rs1900bn has been allocated solely for the power sector.
GSP Plus status
The finance minister highlighted that Pakistan had been recognised as the 24th largest economy in the world by global institutions during his party’s previous tenure. He reiterated the government’s strong commitment to boosting exports and mentioned that timely payments were made by Pakistan.
Regarding the GSP Plus status, he noted the involvement of human rights and political influence, mentioning that the commerce ministry and Foreign Office were proactively handling the matter. He expressed hope for the extension of the GSP Plus status for the country.
