Upcoming budget will focus on attaining sustainable economic growth: Hafeez Shaikh

Adviser on finance says negotiations with IMF moving in a positive direction

Adviser on Finance Hafeez Shaikh said on Friday that the upcoming budget will focus on attaining sustainable economic growth by addressing gaps in the current account and fiscal deficit, Radio Pakistan reported.

Shaikh made these remarks while addressing an Investment Conference in Islamabad.

According to the adviser, negotiations with the International Monetary Fund (IMF) were moving in a positive direction and would help in providing a platform for macro-economic development in the country.



The prime minister's adviser added that the agreement with IMF will send a positive signal to other countries and international financial institutions about Pakistan's commitment to fiscal discipline.

He said that the measures taken by the government resulted in the reduction of imports and increase in exports and remittances.

According to him, steps have also been taken to decrease expenditures and increase revenue.

Earlier, Shaikh rejected the design of the recently proposed tax amnesty scheme, raising objections over the classification of assets and tax rates — marking a clear departure from the policies of his predecessor, Asad Umar.

Instead, Shaikh asked FBR officials to reduce the tax classifications to only two — which means that the Benami assets that would have attracted the highest rates under Umar’s model may now be cleared at the same rate set for other domestic assets.