Govt paid off over $10 billion debt in first year, Hammad Azhar tells Senate

ISLAMABAD: Federal Minister for Economic Affairs Hammad Azhar said on Friday the government aims to bring fiscal deficit down to four per cent in the next one or two years.

Speaking in the Senate during the question hour, he said the incumbent government’s fiscal deficit for the first quarter of current fiscal year remained well within the target.

Hammad Azhar said the government took tough decisions to save the country from default. He added it paid off over 10 billion dollars of debt in its first year in power, which is the highest made by any government.

He maintained foreign exchange reserves are also on an upward trajectory.

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The minister said revenue collection has also witnessed growth during the first half of current fiscal year and efforts are afoot to enhance non-tax revenue. He added the private sector will be provided with an enabling environment to create job opportunities for the youth.

Hammad Azhar said the government intends to gradually reduce the debt-to-GDP ratio. For this purpose, it will enhance revenues and foreign exchange reserves besides cutting expenditures, he explained.

He further said the commerce and finance ministries and the State Bank of Pakistan are in consultation to revive the sick industrial units.

He pointed out that the flawed policies of previous governments adversely damaged these units. He said different proposals including restructuring of their loans are being considered to revive them and enhance the exports.