ISLAMABAD: Pakistan must mobilize private-sector capital to support economic growth and achieve sustainable economic stability, Finance Minister Muhammad Aurangzeb said Friday.
Speaking at an event in Islamabad, Aurangzeb said the government would not allow Pakistan to return to a cycle of economic boom and crisis. He said mobilizing private investment was essential for long-term economic development.
The finance minister said investment could be encouraged through public-private partnerships and privatization, adding that the government was pursuing a structural reform agenda to ensure sustainable economic stability.
He said transparency, efficiency and investor confidence would remain priorities in the privatization process. Pakistan also needs to increase private investment in infrastructure and public-service projects through public-private partnerships, he said.
Aurangzeb said stronger cooperation between the government and private sector was necessary to drive economic growth. He added that economic stability had been achieved through difficult decisions and that the government’s goal was to make those gains sustainable.
The finance minister said Pakistan’s overall fiscal deficit had declined from 12.5% to 2.6%, while Federal Board of Revenue tax collections had increased significantly.
FBR revenue has risen by 40% over the past several years, while the tax-to-GDP ratio increased from 8.8% to 10.3%, he said.
Pakistan’s IT services exports reached $4.6 billion during the last fiscal year, with freelancers contributing $1.6 billion, according to Aurangzeb. Merchandise exports remained at around $30 billion, he said, adding that further efforts were needed to expand exports.
He said reforms were continuing in the energy, state-owned enterprises, taxation and privatization sectors as part of the government’s broader economic reform program.