Addressing Economic Vulnerability
The Finance Minister, Ishaq Dar, addressed the post-budget press conference in Islamabad, stating that the country has successfully overcome economic vulnerability, resulting in a halt to any further decline.
Unveiling the Budget and Concerns
In an effort to appease various sectors before the general elections, the government unveiled a Rs14.5 trillion budget for fiscal year 2023-24, which includes a record-high deficit of Rs7.6 trillion. The budget heavily relies on bilateral creditors such as Saudi Arabia, China, and the United Arab Emirates for funding. However, concerns have been raised as the budget appears to prioritize the informal economy over formal sectors.
Encouraging the Informal Economy
Measures like the amnesty scheme for legalizing black money and the tax on cash withdrawals may further encourage the informal economy and increase currency in circulation. Despite these challenges, Dar remains optimistic and loaded the budget with tax relief, subsidies, and salary increases for multiple sectors. He emphasized that the budget reflects fiscal responsibility and aims to reverse economic losses.
Aiming for Economic Recovery and Growth
Efforts are being made to prevent further decline and achieve the economic indicators of 2017. With proper implementation of the Public Sector Development Program (PSDP), the finance minister believes a growth rate of 3.5% can be easily achieved. The government aims to improve macroeconomic indicators, reduce inflation, create more jobs, and ensure the country’s self-sufficiency.
Published in PakWeb, June 9th, 2023.
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