Pakistan

Pakistan to spend $6b to boost growth: Tarin

Finance minister says the economy needs to expand by 5% next year

News Desk May 07, 2021

Tarin extended a challenge to the newly formed coalition government to match the performance indicators. PHOTO: AFP

ISLAMABAD:

Finance Minister Shaukat Tarin has said the government is planning to boost spending on large infrastructure projects by as much as 40% to create jobs and foster productivity in an economy crippled by the ongoing Covid-19 pandemic.

In an interview with Bloomberg in Islamabad, Tarin said that the federal government will earmark as much as Rs900 billion ($6 billion) for development expenditure in the year beginning July.

He added that the economy needs to expand by 5% next year.

“That’s the bare minimum we need for a country this size,” said Tarin, who is due to present a new budget next month. “There is almost 110 million youth.”

Read: IMF bailout package: Tarin rules out new taxes, hike in tariffs

Tarin, who took office last month as the fourth finance minister of the country since Prime Minister Imran Khan’s government took power in 2018. He has also served in the role between 2008 and 2010.

Tarin’s plan will reverse his predecessor’s decision to lower spending to narrow the budget deficit, which he estimates to be a little above 7% of GDP in the current fiscal year through June, against 8.1% in the previous year. Tarin said he expects the deficit in the next fiscal year to be 1 or 1.5 percentage points lower.

The finance minister’s 5% growth target for next year is a percentage point higher than the IMF’s 4% projection, and he is seeking to boost growth to 6% in the year after.

“We need 2 million jobs every year,” Tarin said. “If we do not go into growth mode, we will have a major crisis on the streets.”

“First we have to get more revenues,” Tarin said, adding that he’s targeting about Rs6 trillion next year in tax authority revenue, compared with this year’s 4.75 trillion-rupee target. “Unless we get more revenues, forget about any incentives to boost the economy.”

COMMENTS (1)

Mohammed Ali Rizvi | 3 years ago | Reply Mr Shaukat Tarin s confidence in the country s Economy something for which Pakistan is in dire need of is encouraging. Two expressions most relevant to the job at hand are 1 boosting spending on large infrastructure projects by as much as 40 to create jobs and foster productivity AND 2 There is almost 110 million youth. Logically speaking we have here two things- A Canvass which is large Infrastructure Projects jobs Productivity AND a brush or writing instrument with which to draw or paint i.e. 110 Million Youth We do not want the Youth for sloganeering demonstrations or idle pursuits which do not help in drawing on the Canvass board or use for Nation s economy. Immediate skills such as handling Construction Machinery design boards IT and Internet Handling Intelligent Machines and Automation Engineering skills in Civil Electrical Electronics Chemical Engineering Medicines Pharmaceuticals etc. We need to strengthen the present Technical Institutes and Colleges in Pakistan with association collaboration with leading Technical Institutes in Japan Germany Russia and UK etc. of existing Pakistani Universities. What we do not want is Khatam Nabuwat Theology Political and social issues spending precious time in argumenting etc. On the matter of Infrastructure right away first thing first through the various chambers of commerce Need to draw agreements with leading manufactureres of all kinds of Construction Machinery https blog.technavio.com blog top-10-construction-machinery-manufacturers and https blog.iseekplant.com.au blog top-ten-heavy-equipment-manufacturers etc. all going one by one depending on priority projects.

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