ISLAMABAD: The Ministry of Finance said that the economic policies and reforms programme of the government, being implemented with the support of the International Monetary Fund (IMF), were based on sound and well-established principles of good economic management.
“The objective of these policies is stabilisation in the first phase, followed by rapid, sustainable and inclusive growth,” the Finance Division said while responding to certain news reports insinuating that the “IMF policies are leading to destruction of economy”.
The Finance Division the other day maintained that the government’s policies had already started showing positive results. There was significant improvement in economic indicators, it said, adding the external sector had stabilised and the fiscal deficit had declined significantly in the first six months of the financial year.
Terming the low tax-to-GDP ratio amongst the fundamental problems of Pakistan’s economy, the ministry statement said that unless this was corrected, the country could not achieve prosperity.
“Therefore, a multi-pronged revenue mobilisation strategy is being pursued to broaden the tax base and raise tax revenues in a balanced and equitable manner,” the statement added.
To cushion the low-income groups from any adverse effects of stabilisation measures, the government has allocated sufficient resources for income support and social protection programmes and has increased spending on health and education. Furthermore, targeted energy subsidies have been given to the vulnerable group, the statement concluded.