DAVOS: Finance Minister Muhammad Aurangzeb on Wednesday said achieving sustainable development is Pakistan’s top priority.
Speaking at a high-level discussion on the topic of growing burden of global debt on developing economies at the World Economic Forum in Davos, Finance Minister Aurangzeb said, “It is difficult to get rid of the debt burden without fixing your own house first.”
The finance minister stated that Pakistan’s biggest issue has been the twin deficits in the current and fiscal accounts. He explained that the primary reason for the fiscal deficit is the unsustainable tax-to-GDP ratio, which stands at 9 to 10 percent.
Efforts are currently underway to increase this ratio to 13 percent, the finance minister added.
The government is focused on reducing its expenditures and minimizing the volume of debt repayments, the Minister further emphasized. He also shared that Pakistan’s debt-to-GDP ratio has decreased from 78 percent to 67 percent.
While acknowledging that borrowing itself is not problematic, the finance minister clarified that the crucial aspect lies in the proper utilization of loans. He suggested that loans should be used to enhance productive capacity and promote exports.
The federal minister has declared that the private sector will have to play a leading role in economic progress and achieving sustainable development is Pakistan’s top priority.
Aurangzeb said Pakistan aims to tackle rising population, poverty and environmental issues and move towards sustainable economic development through the 10-year partnership programne with the World Bank.
He emphasised that in the second phase of CPEC (China-Pakistan Economic Corridor), the focus will shift to promoting business-to-business engagement. He said Chinese companies will be encouraged to relocate their production units to Pakistan under CPEC Phase II.
He hoped that Chinese companies could potentially make Pakistan the hub for their exports.
“Job opportunities will be created in the private sector through a sustainable policy framework and policy continuity. It is a heartening to note that Pakistani youth are getting good jobs around the world,” he said. Aurangzeb concluded by noting that Pakistan’s economic growth has experienced fluctuations over the years, indicating the challenges the country has faced in maintaining stable economic progress.
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