A meeting of the Monetary and Fiscal Policies Co-ordination Board was held under the chairmanship of the Minister for Finance & Revenue, Mr. Shaukat Tarin.
ALSO READ
SBP Devises Rules for Banks to Stop Malpractices of Selling Bancassurance
The Finance Minister briefed the Members of the Board on the current economic situation of the country and highlighted the major incentives given in the budget, which helped improve business confidence and put the economy on a strong economic recovery path.
It was also informed that all key economic indicators relating to the real sector of the economy, fiscal sector, monetary and external sectors are going well, and the government is proactively executing all policy measures to achieve the major socio-economic targets of the current fiscal year. He also highlighted the possible risks to the economic activities and strategy to counter these risks, which were appreciated by the members of the Board.
Secretary Finance briefed the Members of the Board on budgetary allocations for various activities and informed them about the ways and means to maintain the fiscal discipline. He also shared the strategy to contain the non-development expenditure with the focus to optimally utilize resources of the country and improve the service delivery at large for the common man.
ALSO READ
Pakistan Oil Refining Policy Draft Stopped by Asad Umar: Report
Governor SBP informed the Board about the Monetary Policy stance. He shared the analysis of the SBP on the policy rate, credit availability, exchange rate movement, and inflationary situation. He also explained that the policy mix is supporting the growth momentum and highlighted the increase in commodities prices in the global market, which have implications for higher import bills and inflation.
It was also informed that it is encouraging signs that exports are picking up along with an increase in import of machinery, which will enhance the productive capacity of the economy and create an exportable surplus. He also explained the policy measures, which SBP is executing to encourage business activities in various sectors of the economy and highlighted that there are ample opportunities for investors/exporters and youth of the country to take benefits from SBP’s schemes to extend or initiate their business.
Deputy Chairman Planning Commission apprised the meeting about the execution of development activities. He also highlighted the possible options for resource mobilization and to utilize them effectively for the development of potential sectors of the economy.
The Adviser to the PM on Commerce and Investment briefed about the structure of trade of the country along with major destinations. He also presented the various measures which are under execution to enhance exports in potential areas. He also mentioned the various categories of imports which can be rationalized by focusing on their substitutes. A comprehensive road map was also discussed to minimize the trade deficit of the country. It was also highlighted that fiscal and monetary facilitation would continue for potential sectors of the economy.
ALSO READ
US Dollar Rate Reaches 2021’s Highest Level in Pakistan
Dr. Asad Zaman appreciated the major fiscal and monetary measures of the government, which are supporting the business activities. He also highlighted the potential areas where Pakistan has comparative advantages in the export market and identified some low-hanging fruits for import substitution. He emphasized that the goal of well-coordinated Monetary and Fiscal Policies is to achieve full employment.
Minister for Finance & Revenue emphasized the importance of the Monetary and Fiscal Policies Co-ordination Board for designing and executing policies to achieve economic targets and overcome the possible risks.
He advised making this forum more effective for maintaining better coordination of policies to achieve the planned macroeconomic goals. The chair urged that the Board should be more proactive in reviewing the impact of Fiscal and Monetary Policies on economic growth, employment, and the external sector of the economy.
Other members of the Board present in the meeting were the Adviser to the PM on Commerce & Investment, Deputy Chairman Planning Commission, Governor SBP, Dr. Asad Zaman, and senior officials of the Finance Division.
