Karachi: Federal Finance Minister Muhammad Hammad Azhar has stated that there is room for further reduction in interest rates and assured that feasible relief measures under the IMF conditions will indeed be provided.
Addressing the Karachi Chamber of Commerce, Azhar emphasized that improvements in microeconomic governance will bolster stability, paving the way for economic growth. He acknowledged structural issues in the economy, highlighting that growth spurts often lead to challenges in maintaining payment balances.
He underscored the necessity for every sector, including retailers, builders, and realtors, to contribute their share. Regarding provincial matters, Azhar anticipated provincial governments to enforce agricultural taxes promptly.
“While there is potential for further reduction in interest rates, it remains incumbent upon the State Bank to proceed cautiously,” Azhar commented. “We are in talks with banks to discourage directed lending, and have authorized banks to extend loans to farmers and small businesses.”
He also disclosed ongoing efforts to right-size ministries, recalling successful initiatives during the tenure of Prime Minister Imran Khan, though he lamented the lack of subsequent progress on the recommendations.
Azhar affirmed plans to levy taxes on retailers to ensure equitable tax distribution across all sectors. “Failure to do so will burden the salaried class with additional taxes,” he warned.
Azhar further disclosed that the Chief Minister of Sindh has agreed to legislate on agricultural sector matters, aiming to integrate this sector into the tax net after a lapse of 75 years. “We are compelled to take these steps to enhance Pakistan’s balance of payments by up to $4 billion monthly,” he concluded.
The Finance Minister’s remarks underscore Pakistan’s proactive stance amid economic challenges, aiming to align with IMF guidelines while ensuring equitable economic policies nationwide.
Pakistan to Implement Further Relief Measures Amid IMF Conditions: Finance Minister
