ISLAMABAD: Finance Minister Muhammad Aurangzeb on Tuesday said that national economy suffered cumulative losses of Rs190 billion per day on account of recent strike and strife, besides more than 0.8 million people were affected in the federal capital.
In a televised address on Tuesday, the minister said that the Economic Wing of the Finance Ministry formally calculated the adverse impact, taking in account losses in gross domestic product, tax revenue, law enforcement costs, business and export losses, foreign direct investment flow, and information technology.
He further said that Pakistan’s total GDP currently stood at Rs124 trillion, with Q2 estimates at Rs32 trillion on the basis of which the Economic Wing estimated losses.
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The finance minister expressed serious concern over the economic losses incurred due to strike and strife. “We face serious consequences whenever the government is compelled to shut down businesses and cities due to the law and order situation,” he added.
Highlighting their negative impacts on growth and stability, Aurangzeb said that strike and strife were taking a toll on the economy and bleeding the national exchequer. “Such actions cost the country around Rs190 billion per day, severely affecting economic growth”. He urged those calling for strikes to consider their repercussions and instead engage in negotiations to resolve their issues.
The minister urged the masses to shun the elements who wanted to wreak havoc with the national economy, as smooth law and order situation is inevitable for economic growth. He said the dividends of macroeconomic stability are being witnessed due to prudent economic policies of government. “The government has strived hard to bring about economic stability,” said the finance minister, asserting the efforts of the government have started paying off.
“Chinese nationals targeted in Karachi were the officials of independent power producers (IPPs) engaged in talks with the government of Pakistan to revise the agreements,” said the minister, adding that deceased engineers were collaborating with Minister for Energy (Power Division) Awais Leghari on IPPs projects.
Aurangzeb said that he and Minister for Power had led negotiation with power companies by requesting them on debt re-profile and to extend maturity due to which the government might bring deduction in tariff.
The minister also said inflation has dropped to 6.9 percent, a 44-month low, with all three elements – headline inflation, core inflation, and average inflation – now in single digits. He hoped that the policy rate would gradually decrease in the upcoming State Bank of Pakistan (SBP) monetary policy meeting.
He emphasised that KIBOR, was already below expected levels.
Furthermore, the government had reduced its borrowing to minimise debt servicing costs, enabling banks to lend more to the private sector.
The minister said that macroeconomic stability had begun to take hold, with currency stability and $10.7 billion in reserves following the International Monetary Fund tranche.
Copyright Business Recorder, 2024
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