Visit to China 'very important' for Pakistan's economy: Tarin

Tarin urges China to relocate industry to newly completed SEZs

ISLAMABAD:

Finance Minister Shaukat Tarin on Monday stated that Prime Minister Imran Khan's visit to China is economically and politically "very important" for the country. 

The visit, which is not officially a bilateral one, is also being used as an opportunity by Islamabad to discuss some pressing bilateral issues, including the China-Pakistan Economic Corridor (CPEC).

Prior to the visit, several preparatory meetings took place in Islamabad to fine-tune the agenda, which focused on enhancing trade, seeking investment and transfer of industries from China to Pakistan.

In a video message, Tarin said the government would ask China for help and propose that Beijing brings industry to Pakistan. 

"We ask you to relocate your industry to Pakistan as our Special Economic Zones (SEZs) are now ready. If you bring your industry here, it will be a win-win situation for both countries."

My views on economy before leaving to China. pic.twitter.com/yPjh43w57y

— Shaukat Tarin (@shaukat_tarin) February 3, 2022

In addition to creating industrial opportunities, Tarin stated that the prime minister would request China to aid the federal government’s ‘Agriculture Transformation Plan’, since Pakistan's economic growth is reliant on the productivity of the agricultural sector.

Read: "IK’s visit to China proves ‘uniqueness’ of Pak-China ties"

Referring to the IMF’s long-delayed approval of the sixth loan tranche of its programme for Pakistan, Tarin maintained that it showed the fund’s approval of the PTI-led government’s economic policy, and would bring much-needed stability to Pakistan’s economy and currency.

The IMF approval comes after the PTI government had narrowly managed to get the crucial State Bank of Pakistan (Amendment) Bill passed from the opposition-controlled Senate on Friday.

Sources told The Express Tribune that the review largely remained smooth.

The IMF in its press statement after the board meeting has plainly told Pakistan that personal income tax measures are “essential” along with harmonisation of sales tax across the provinces and the federation.

Moreover, increasing electricity prices was still part of the conditions for remaining in the IMF programme.

The IMF has also warned about elevated risks to Pakistan’s economy from the growing current account deficit that it projects will widen to 4% of the GDP in the current fiscal year. The inflation is also projected to remain in double-digit at the year end.