ISLAMABAD: New structural economic reforms are needed to enhance revenues, ensure better utilization of funds and grants in order to bring economy on right track.
These views were expressed by Salman Shah, financial expert and former Finance Minister in an interview on PTV.
He said recently a Muslim friendly country had given financial assistance which would be helpful in improving fiscal and financial aspects of the economy.
He said due to borrowed funds, country's external liabilities had increased added that if these were in shape of grants, then they are helpful in improving the economic indicators.
He said country's overall debt ratio is 63 to 64% which is not high indebtedness but according to Fiscal Responsibility Act, it should be 62% and should not cross this point.
He said that according to the economic policy, fiscal tools should come in the form of grants which will help control deficit and ensure expenditure management.
He said inflation, especially the domestic inflation, is caused due to energy crisis and the State Bank hopes to control inflation in this regard.
Replying to a question, he said that high oil and food prices affect inflation rate and this happened due to the high and low prices at international oil market.
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