ISLAMABAD: Minister for Planning, Development and Reforms Ahsan Iqbal said on Tuesday that peace, stability, and continuity of policies are needed for at least a decade for the economy to show results.
Speaking at a “Leaders in Islamabad Business Summit 2024”, the minister said that the country would be in need of making payment of $70 billion in the next three years.
The minister added that exports of $100 billion in the next eight years would help the country economically take off, as well as meet, the external requirements.
The minister deplored that the biggest failure of the country has been that it was not connected with the global chain system as every economy after the Second World War had export-led growth but unfortunately, Pakistan’s main focus remained on the domestic market.
Iqbal said that average growth of nine per cent would be needed to take the economy to $3 trillion by 2047 when two countries – Pakistan and India – would be celebrating 100years of their freedom. The minister added that an increase in revenue is the only way forward as existing revenue is not adequate for Rs8 trillion debt servicing. He added that debt servicing is the biggest challenge and the elephant in the room for which an increase in revenue is essential.
Moreover, he said that $5 billion Saudi investment is expected soon and the Crown Prince would also be visiting Pakistan. He added that the Special Investment Facilitation Council (SIFC) provides a platform for attracting investment in the country.
Minister for Power Awais Khan Leghari said that the government has started the process to convert imported coal-based power plants to local coal to contain foreign exchange loss.
Additionally, he said that discussions are also going on with all the stakeholders on the weighted average cost of gas.
He added that the government is also working on incentive packages to increase electricity consumption and has stopped the Central Power Purchasing Agency (CPPA) from entering direct power purchase contracts.
Leghari added that the institutional restructuring of the National Transmission & Despatch Company (NTDC) would be done quickly as its inefficiencies were causing tremendous loss to the nation as multiple projects were being delayed for years due to mishandling.
The government would also be minimising the role of power companies as withholding agent in tax collection and this work should be done by the FBR.
The minister said that the future outlook of the government in terms of the power sector is that the private sector has to take its leadership role through participation in the power sector, particularly, the distribution system and the government has sought from Pakistan Business Council few experts on how to phase out distribution companies.
Copyright Business Recorder, 2024
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