ISLAMABAD: Caretaker Federal Finance Minister Finance Dr Shamshad Akhtar said that a comprehensive overhaul of the government’s fiscal apparatus is vital to lower the revenue-expenditure gap.
During her keynote address on a national seminar titled ‘Pakistan’s Economic Challenges and the Way Forward’ Pakistan’s, Shamshad Akhtar said that bold reforms would lead to a new era of development and prosperity in the country.
She said that effective implementation of ambitious reforms will depend on addressing critical underlying institutional, governance, and structural constraints.
Shamshad Akhtar who also holds portfolios of Revenue and Economic Affairs highlighted five key areas that have increased the vulnerability of Pakistan’s economy to domestic and global shocks.
First, unsustainable fiscal policy due to revenue gaps and unproductive expenditure. The Second, fiscal unsustainability has enhanced government recourse to public debt which has increased.
The third, climate shocks as the global warming model predicts that Pakistan’s weather patterns will become even more volatile and extreme in the decades ahead, with an average increase in temperatures by 1.3% to 4.9% by 2090. The fourth, the lack of innovation and diversity in the structure of the economy and the fifth, the failure to integrate Pakistan’s economy with the rest of the world.
Read More: FinMin Shamshad Akhtar suggests listing of govt debt securities at PSX
Earlier, the Finance Minister suggested that the securities market can play a vital role in the development of debt market through the listing of Government debt securities on Pakistan Stock Exchange (PSX).
Speaking at the inauguration ceremony of the Centralized Gateway Portal, Shamshad Akhtar said that the issuance securities through public auctions at PSX will facilitate retail participation, provide greater transparency, channelize savings and promote debt market in Pakistan.
