The Ministry of Finance, Revenue and Economic Affairs is preparing a medium-term economic framework (MTEF) keeping in mind the likely conditions associated with a bailout package from the International Monetary Fund (IMF) without taking the Ministry of Planning, Development and Reforms on board, it is learnt.
The Ministry of Planning, Development and Reforms plays a critical role in preparing an MTEF but the finance ministry has yet to consult or discuss MTEF with officials from the Ministry of Planning, Development and Reforms, informed sources told this correspondent.
The finance ministry has already given a comprehensive briefing to Prime Minster Imran Khan on Medium-Term Economic Framework, sources added. A senior government official told Business Recorder that the finance ministry has projected 4.2 percent to 6 percent Gross Domestic Product (GDP) growth rate in MTEF for the next five years on the basis of an average growth of 3.6 percent in agriculture, 6.1 percent in industry and 6.8 percent in services sector.
Pakistan Tehreek-e-Insaf (PTI) government also aims to increase exports from between 12 percent to 14 percent of GDP during its five-year tenure, the official further revealed; and MTEF projects a reduction in the budget deficit from 6.6 percent to 4 percent of GDP and a current account deficit of zero during the next five years.
Minister of State for Revenue Muhammad Hammad Azhar stated Friday that the government will announce a Medium-Term Economic Framework next week, where more supply-side measures will be taken to give a fresh boost to exports and investment. He said that the government is moving towards direct taxation while gradually curtailing indirect taxes.
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