Finance Minister Calls For Fiscal Discipline By Reducing Operational Expenditure

Federal Finance Minister Muhammad Aurangzeb, Friday, called for maintaining fiscal discipline through reduced operational expenditures and also advocated for a public-private partnership model to foster national development

KARACHI, (UrduPoint / Pakistan Point News - 29th Mar, 2024) Federal Finance Minister Muhammad Aurangzeb, Friday, called for maintaining fiscal discipline through reduced operational expenditures and also advocated for a public-private partnership model to foster national development.

He expressed the views in a significant meeting held here at the State Bank of Pakistan to deliberate on pivotal economic strategies and reforms. Governor SBP Jameel Ahmed, Chairman Pakistan Banks' Association Zafar Masud, and high-ranking officials from various Pakistani banks attended the meeting.

The meeting was a profound step towards aligning financial institutions with Pakistan's broader economic goals, underlining the need for strategic collaboration and robust implementation of reform initiatives, said a statement received here.

The minister opened the discussion highlighting the robust start to the year, with a notable 5% growth in agriculture, spearheaded by a bumper rice crop. Aurangzeb acknowledged the visible signs of macroeconomic stability depicted by a narrowing current account deficit and exchange rate stability.

Underscoring the objectives of sustaining the stability and its transition into a permanent state, the finance minster emphasized the synergy between the industrial sector and energy resources, alongside ongoing dialogues with the Ministry of Energy.

He lauded the caretaker government for maintaining fiscal discipline and re-framed the "IMF program as Pakistan program" aimed at reinforcing Pakistan’s economic foundation.

He also called for proactive implementation and ownership of the reform agenda.

The Minister stressed the importance of broadening the tax net to include under-taxed and untaxed sectors, particularly service providers, and addressed the critical issue of energy theft, advocating for streamlined governance and eventual privatization of power distribution companies.

He commended the State Bank for its decisive actions against illegal exchange operations and its support for the Pakistan International Airlines (PIA) through issuance of necessary NOCs, acknowledging the positive reception of the airport outsourcing plan.

The discussion with the banking sector leaders focused on the essential roles banks must play in supporting priority sectors like agriculture, SMEs, and technology, through appropriate incentives and infrastructure development.

The dialogue also covered the government's dedication to enhance ease of doing business, requiring legal and procedural amendments, and a push towards a digitized economy.

Governor SBP Jameel Ahmed remarked on the banking sector's potential to significantly support agriculture and SME financing and emphasized the integration of the tech sector into formal banking through improved service delivery.

The minister while concluding the meeting, called for fiscal discipline through reduced operational expenditures, and advocated for a public-private partnership model to foster national development. He urged every societal segment to contribute to this collective progress.