Growth led policy to be adopted for economic revival: Ikhtiar
Talking to a private news channel, Ikhtiar Baig said "things cannot be hundred percent corrected and we are extra ordinary performing best in some of key economic areas".
He said the country have achieved $ 25 billion exports this year which is a landmark achievment and more surge is due to the unit price hike.
He pointed out that in the current year's budget there is total of $ 11 billions remittances, reserves have been above 17 billions. As far as foreign reserves are concerned they are of two types, dollar and rupees accounts. In dollar accounts the country is more or less equal and first time current surplus has been done. In rupees account the borrowing of 750 billions has been accepted as was said by the finance minister Sheikh Abdul Hafiz in his budget speech.
He said "we have to recover the deficits as loans and borrowing could not fulfill our fiscal imbalances and tight monitoring policy is not good solution to obtain positive results".
Ikhtiar Baig said he has suggested to adopt growth led policy irrespective of fundamentals during his meeting with the president and prime minister.
He said he recommended to create new jobs, poverty eradication, enhanced exports etc.
He said the Planning commission has made Five years growth led plan, 5 years tax holiday plan for investment and incentives have been introduced.
He added ten things should be adopted to improve economic situation which are 1.tax net should be broaden, 2. good governance, 3. corruption elimination,4. reduction in the non productive expenditure is a must, 5. loss in public sector companies should be stopped, 6. circular debt , 7. energy availability is very necessary ,8. growth oriented policies should be contained, 9. revenue generation instead of revenue collection, 10. excessive borrowing should be contained.
"There should be proper documentation of economy as it will increase tax net adding sales tax rate should also be balanced .
He appreciated role of Federal Bureau of Revenues (FBR) as a best team in present scenario. Present personnel of FRB are the best professional, dedicated and resolute, he added.
Copyright APP (Associated Press of Pakistan), 2011