Govt to devise ‘long-term’ policies for economic growth: PM

Imran Khan says current account deficit turned into surplus for the first time in four years


News Desk November 20, 2019

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Prime Minister Imran Khan has said that his government is moving towards devising “long-term” trade and other policies to bring economic prosperity in the country.

Addressing a ceremony held to distribute Rs30 billion refund cheques of sales and income tax among prominent exporters at the PM Office in Islamabad on Wednesday, he said the country has not been able to make significant economic progress due to absence of long-term economic policies.

“China is progressing by adopting long-term strategies… now we are heading towards adopting the same approach,” he added.

The premier said that the South Asian competitors including India and Bangladesh moved ahead of Pakistan through same approach.

Urging business community to consider the payment of taxes as their national obligation, he said the government was firm to uplift the masses and check poverty through wealth creation, tax collection and industrialisation.

He said that the decision of seeking financial assistance from friendly countries was against the national dignity. However, the government had to swallow the bitter pill, he added.

PM Imran said that his government inherited a depreciating economy with almost no foreign exchange reserves. However, the confidence of investors in the stock market is increasing which is heartening to see.

“For the first time in four years, the current account deficit has turned into surplus,” he claimed.

“Inflation increases poverty,” he said.

The event was aimed at giving priority to the demands of business community and to create a tax-friendly environment for improvement of cash flow for taxpayers in general and for export-oriented sector in particular.

The prime minister lauded Federal Bureau of Revenue (FBR) Chairman Shabbar Zaidi for taking effective steps for improved tax collection that registered an upward trend.

Imran Khan mentioned that US$19 billion of current account deficit was the biggest challenge at the time his government came in power last year, however, said the efforts of economic team resulted in stabilisation of economy.

He said the country for the first time in four years had witnessed current account surplus besides the restoration of public confidence in the stock market and the volumes of exports had increased.

The prime minister said previous short-term policies and adhocism for political gains were the main reasons behind instability of economy.

He said his government was inspired by China's model of economic progress which was based on long-term policies and human development. He said the country had rich gold and copper reserves. However the scourge of corruption played havoc incurring billions of losses to national exchequer, he added.

In Karkay case, he said the government had resolved Rs170 billion dispute with the support of Turkish President Recep Tayyip Erdogan, adding efforts were also afoot to work out the Rs900 billion damages imposed on the country in Reko Diq case.

Referring to the economic hardships his government faced after coming into power, the prime minister hailed the financial support extended by the friendly countries including Saudi Arabia, United Arab Emirates, China and Qatar that helped the country to cope with the challenge of current account deficit.

He, however, added that as financial loans and aids were not considered good for the dignity of a country, the government was striving to strengthen the country's economy by promoting tax culture and industrialisation.

(With additional input from APP)

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