Tarin assures of drop in basic commodities prices

Adviser says decline in rates in global market will benefit Pakistan as well

ISLAMABAD:

Adviser to Prime Minister on Finance Shaukat Tarin has reassured the people struggling to make ends meet amid soaring inflation that the fall in prices of basic commodities in the global market will have an impact on Pakistan as well, saying: “So we need not worry.”

Addressing the 24th Sustainable Development Conference organised by the SDPI on Thursday, the finance adviser said, “After coronavirus, Pakistan's economy has grown at a rate of 4%. Our economy is moving towards sustainable growth which is also reflected in the economic indicators. The burden of the betterment of society must be borne by all.”

Tarin discussed in detail the state of the country's economy and the government's policies.

He said that due to significant difference between exports and imports in Pakistan, the “current account deficit is high”. “Our exports account for 10% of the country's gross domestic product and imports 25%.”

He said that in order to increase exports, industrial activities would have to be promoted along with the agricultural sector.

Read Despite 'strangulating' inflation, Tarin says 'no need to panic'

“Steps are being taken to improve the agricultural sector.”

Research in agriculture is being encouraged, he said, adding that dollars are needed to keep the value of the currency stable.

For an economic growth rate of five to six per cent, revenues should be 20 per cent of the GDP.

“The government wants to increase tariffs so that we do not have to borrow.”

He said that the government has taken several steps to increase domestic production and boost exports, adding that the government has reduced the rate of duty on raw materials.

“The industrial sector is being given concessions,” he added.

On the power sector, the finance adviser said that due to excess power during the previous governments, the price of unused power is being paid.

“The government is reforming the power sector,” he said, adding that in the next three to four years, the fruits of economic growth will be transferred to the grassroots.

He said the government had adopted the method of bottom-up approach instead of trickle-down, under which millions of families were being assisted through various projects under the umbrella of Kamyab Pakistan Programme, Kamyab Jawan Programme and Ehsaas.

"We will also benefit from the reduction in petrol and gas prices in the global market. The people will get economic benefits from the reduction in petrol and gas prices," he said.