Asad Umar maintains positive outlook on economy

Speaks to stockbrokers at the PSX, assures of reviewing high taxes on shares

KARACHI:  

Finance Minister Asad Umar has anticipated turnaround in the economy in FY2020-21.

Speaking at the Pakistan Stock Exchange (PSX) on Saturday, Umar estimated a 33% drop in the current account deficit to $12 billion in current fiscal year 2019, compared to record high of $18 billion recorded in FY18.

The meeting comes after weeks of volatile trading at the PSX. Stocks had taken a beating as the index plummeted to new lows.

The IMF bailout in the process, at present, would be the last loan programme, he added.

He said the current account deficit will further drop in FY2019-20 and FY2020-21 will be a break-even year for the economy.

The government has taken policy measures to fix the faltering economy.

Imports have started slowing down, while exports and workers remittances have started improving.

"The current account deficit will narrow down through balancing imports and exports and increasing remittances," Umar said.

The minister also assured stockbrokers and traders of reviewing the high taxes on trading of shares and regulations in PSX.



He assured the gathering of stockbrokers and traders that they will work to improve Pakistan’s ranking in the ease of doing business to 99 from the current 147 at present.

For this purpose, his government has set up the Council of Business Leaders.

The council under the leadership of PM Adviser on Commerce Abdul Razak Dawood has been tasked to look into the matter and suggest measures.

Actions on the measures to be suggested would be taken and implemented from the highest level of the authority in the country.