KARACHI: Caretaker Finance Minister Dr Shamshad Akhtar stated on Saturday that the interim government’s “proactive measures” to encounter external and domestic challenges have stabilised the economy.

She added that the process of transforming the economy is underway in the country, acknowledging that structural reforms in every sector takes time.

While addressing members of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) during her visit, along with Chairman of the Federal Board of Revenue (FBR) Malik Amjed Zubair Tiwana, she said that the leadership is committed to transforming the economy of the country.

Dr Akhtar mentioned that the government has taken joint action to combat currency smuggling and narrow the difference in dollar rates between official and open markets.

She highlighted that the government has undertaken various initiatives for the betterment of the country. The trade deficit narrowed by 3.6 per cent to $1.3 billion in December 2023 compared to $1.9bn in the same period last year, demonstrating positive progress. Additionally, she expressed optimism that the government’s efforts would lead to an expansion in export potential and the export market.

The minister said that the government encountered the external and domestic challenges. She said that the challenges were enormous but the government took proactive measures to overcome them.

She said that the Pakistan Credit Guarantee Company had been formed for Small and Medium Enterprises (SMEs). She emphasised that the companies had to stand on their own feet and should not rely on subsidies.”

The minister stressed that subsidies should be directed towards the overall development of the country, encompassing education, health, women’s empowerment, and other welfare sectors.

Dr Akhtar, while advising FPCCI members, suggested that they should consider turning to the Pakistan Stock Exchange (PSX) for debt purposes instead of approaching banks.

She said that the performance of the PSX remained positive in December 2023, emerging as a new entity.

She further mentioned that the benchmark KSE-100 index gained 1,924 points, closing at 62,451 points as of Dec 29, 2023. Simultaneously, the market capitalisation of PSX increased by Rs334bn, settling at Rs9.063 trillion by the end of Dec 2023.

The minister stated that a substantial change was being introduced to the FBR to enhance its performance. She emphasised, “We need to raise the economic growth of this country.”

Chairman FBR, Mr Tiwana, said that the government is diligently working on reforms in the FBR and is close to their implementation.

Earlier, FPCCI President Arif Ikram Sheikh praised the efforts of the caretaker government and urged consultations with FPCCI in the fiscal budget-making process to facilitate the business community.

Published in Dawn, February 4th, 2024