WATCH: Govt to do better than 2.4% growth rate target, vows finance adviser

Hafeez Sheikh speaks to Express News in an exclusive interview

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Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh pledged on Friday that the government would surpass its low economic growth rate target of 2.4% in this fiscal year on back of higher development spending and incentive package for the textile sector.

He made the remarks in Express News programme The Review – a new current affairs talk show focusing on economy, foreign affairs and national security matters. The talk show is hosted by The Express Tribune’s financial correspondent Shahbaz Rana, and its defence and diplomatic affairs correspondent Kamran Yousaf.

Please tune in ⁦@ExpressNewsPK⁩ at 10 pm to watch meaningful discussion on serious economic issues affecting every segment of the society ⁦@Kamran_Yousaf⁩ pic.twitter.com/nSjk8p9tUO

— Shahbaz Rana (@81ShahbazRana) November 22, 2019

https://twitter.com/Kamran_Yousaf/status/1197726895929987073

Shaikh said political stability and trading with neighbours were the prerequisites for sustainable economic growth.  “The growth trajectory was positive and I assure you that against the target of 2.4%, we would achieve economic growth rate of over 3.5% in this fiscal year,” he said.

The adviser said that relatively high economic growth rate would be achieved by ensuring that the Rs950 billion Public Sector Development Programme, including private spending component, was fully spent in on-going fiscal year. Provinces, he added, also had Rs1 trillion cumulative annual development programme, which will propel the economic growth rate.

The de-facto finance minister said that the government announced Rs300 billion textile package that will improve economic growth prospects in this fiscal year.

To a question, Shaikh said the country could not achieve the path of sustainable economic development until there was political stability, and trade with neighbouring states.

Asked if the current financial reform package by the IMF will be Pakistan’s last, the adviser said he couldn’t be certain. “If we manage to complete the IMF programme, it would provide good platform… I cannot say what will be situation after 20 years,” he said.

Shaikh said the government froze the salaries of senior government officers and military generals to ensure fiscal discipline.

He admitted that inflation, which impacted the living standards of the people, was the topmost concern of the people and the government was trying to contain inflation through monetary policy.