PM hopes for resolution of Rs400b tax cases

Underlines need for drawing investment, lessening reliance on loans to secure brighter future

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ISLAMABAD:

Prime Minister Shehbaz Sharif has expressed confidence that the pending tax cases of Rs400 billion will be resolved, as reflected in a recent Sindh High Court ruling, which has resulted in a relief of Rs23 billion for the government.

While discussing the government's achievements in a recent cabinet meeting, the PM highlighted the key reforms introduced over the past year. For the first time, Pakistan has successfully implemented e-governance, digitalised the Federal Board of Revenue and improved foreign exchange reserves from $4 billion to $12 billion.

He, however, termed the country's state-owned enterprises "bottomless pits" due to their accumulated losses of Rs850 billion and stressed the need for overhauling the entities to bring efficiency and reduce losses.

The premier declared that once terrorism was eradicated, investment would flow into Pakistan, enabling it to regain the lost stature on the global stage.

He took pride in the fact that for the first time in Pakistan's history all state institutions were aligned, working together for national prosperity. He emphasised the importance of increasing income, attracting investment and reducing dependence on loans to secure a brighter future for the country.

Turning to the economy, the PM recalled that when his government took office, Pakistan was on the brink of financial collapse, with the looming fear of default. However, through dedicated efforts, his administration successfully stabilised the economy.

He praised cabinet members and government officials for their role in the turnaround, including a sharp drop in inflation, reduction in policy rate, rise in foreign remittances, growth in foreign investment and higher foreign exchange reserves.

He asserted that even greater effort was required to maintain the momentum and transition from stabilisation to sustained economic growth under the "Uraan Pakistan" programme. With policy continuity, he projected, Pakistan could become a $1 trillion economy by 2035.

The PM acknowledged Saudi Arabia's recent extension of a $1.2 billion oil facility and the UAE president's rollover of $2 billion in financial support. He noted that friendly countries had helped arrange $5 billion to meet an IMF financing condition and credited the army chief for playing a key role in economic improvements as they worked together to secure international support.

Despite challenges, Sharif said, Pakistan was on the path to economic recovery and long-term stability.