Says Pakistan has achieved macroeconomic stability and now needs to focus on accelerating economic growth
Prime Minister Shehbaz Sharif on Wednesday appreciated the cooperation of the chief ministers of all provinces during the budget-making process. saying that all decisions were taken in the larger national interest.
Addressing a meeting of the National Economic Council (NEC), PM Shehbaz said that Pakistan had achieved macroeconomic stability. now needed to focus on accelerating economic growth, boosting employment opportunities and improving the living standards of ordinary citizens.
He said the federal government had worked with complete sincerity. maintained close consultations with the provinces on all important matters, taking decisions in the larger national interest.
He appreciated the cooperation of the provincial chief ministers during the budget-making process. acknowledged their support in managing financial resources during challenging times. He emphasised that while macroeconomic indicators had stabilised, the next crucial phase was to inject growth into the economy.
“Moving forward, economic activity and development are a joint responsibility of the federation and the provinces,” he said.
PM@CMShehbazhas emphasized the need for collective efforts to promote employment, boost production, enhance exports,. generate economic activity to accelerate economic growth@PakPMO@Financegovpk#RadioPakistan#Newshttps://t.co/PwNjPiddi7pic.twitter.com/Y5VQ0aIrhT
The prime minister noted that Pakistan remained in the International Monetary Fund (IMF) programme. had successfully navigated several difficult challenges. Referring to recent regional tensions, he said oil prices had risen due to the crisis, creating additional economic pressures.
He said the unity. coordination among all four provinces had helped the government effectively manage the situation and ensure uninterrupted fuel supplies across the country.
“Due to well-planned policies and close coordination, there was no panic at petrol pumps,” he remarked.
The prime minister said the federal government had remained in constant consultation with the provinces for several weeks to devise strategies for efficient resource management. Speaking about the defence budget, he paid tribute to the sacrifices made by law enforcement agencies. the armed forces in the fight against terrorism.
“Our officers. personnel are making immense sacrifices against terrorism,” he said, expressing confidence that terrorism would be eradicated through collective national efforts. The prime minister observed that despite achieving macroeconomic stability, ordinary citizens remained concerned about employment opportunities. access to basic facilities.
Read:Centre, provinces trim uplift budgets for strategic initiatives
“To address these concerns, we must accelerate economic growth,” he said, stressing the need to promote agriculture, exports. industrial development. He underlined the importance of mobilising resources. providing incentives to key sectors to revive industrial activity and strengthen the national economy.
PM Shehbaz also informed the meeting. he had held a detailed discussion with the IMF managing director the previous night. He said she had appreciated Pakistan’s sincere efforts to stabilise the economy and expressed support for the country’s reform agenda.
The prime minister said Pakistan must move forward with greater speed and determination to achieve sustainable economic growth and prosperity.
NEC reviews Rs1tr development plan
The government had postponed the NEC meeting four times to develop some initial understanding among the stakeholders over next fiscal year's budget. Tariq Fazal Chaudhry, the Minister for Parliamentary Affairs, said on Tuesday that the summary to convene the budget session has been moved. the budget would now likely be presented on Friday, June 12.
Ahsan Iqbal said that the proposed PSDP worth Rs1 trillion will be laid before the NEC, adding that no new development scheme will be included in the new fiscal year except for those projects proposed by the Ministry of Defence. the Ministry of Interior. He said the provincial governments would also adjust their proposed annual development plans to create additional fiscal space.
Another government official said that the provinces would spare over Rs350 billion from their development budgets. According to the understanding. the newly reduced Rs1 trillion PSDP size can again be increased to Rs1.4 trillion once the federating units agree to give more resources to the Centre.
The government had demanded Rs1.2 trillion from the provinces for meeting its additional expenses and providing tax relief. However. no immediate consensus could be achieved to either deduct money from the National Finance Commission (NFC) through a presidential order or seek the NEC approval. The IMF was also not comfortable over the NEC nod for additional spending.
Read more:Afridi threatens NEC boycott over rights
The federal government wanted to allocate Rs335 billion for water sector critical projects like Diamer Basha Dam, Mohmand Dam. Dasu Dam. An additional Rs335 billion had been planned to be given for the strategically important initiatives.
The IMF has reflected Rs2.665 trillion for defence spending for the next fiscal year, but the government wanted to sanction around Rs3 trillion due to increased hostilities on eastern. western borders.
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