Caretaker Commerce Minister Gohar Ejaz has proposed that the exchange rate of the US dollar, currently at PKR 300, could potentially decrease to PKR 250 by revitalizing Pakistan's export industry. Ejaz emphasized that this approach could help mitigate inflation in the country.
Addressing a press conference in Islamabad following a meeting of the Special Investment Facilitation Council (SIFC), the minister identified "supply chain shortages" as a significant contributor to inflation in Pakistan.
Gohar Ejaz stressed the importance of boosting exports and creating employment opportunities. He highlighted that the SIFC discussed the vital nature of prioritizing the revival of industries, including detailed discussions on raw material supply chains, energy pricing, and gas availability.
Ejaz emphasized that effective management of inflation could be achieved by strengthening exports. He suggested that by revitalizing the export sector, the USD to PKR exchange rate, currently at PKR 300, could potentially decrease to PKR 250, thereby helping to alleviate inflation.
However, he cautioned against excessive spending without corresponding earnings, emphasizing the importance of market-based approaches.
In a joint press briefing, caretaker Finance Minister Shamshad Akhtar highlighted that the interim government has adopted a holistic approach to address economic challenges and develop a roadmap to enhance macroeconomic management in the country.
She emphasized the importance of intergovernmental collaboration and coordination, noting that subcommittees of the cabinet have been institutionalized to define a roadmap for bolstering macroeconomic management.
Akhtar explained that the government is working to strengthen fiscal stability and coordination with monetary and external policies. She emphasized the significance of fiscal stability, which she described as the cornerstone of macroeconomic management.
The finance minister also revealed plans to review the economy, initiate structural adjustment reforms, enhance the social safety net, and expedite financial inclusion, particularly in the SME and agriculture sectors.
Additionally, Akhtar disclosed the government's intention to formulate a policy for State-Owned Enterprises (SOEs) to address their issues, reduce their burden on the exchequer, and improve corporate governance. She also mentioned the establishment of a Central Monetary Unit to facilitate SOEs' listing for privatization.
Furthermore, Akhtar outlined a strategy to diversify SOEs' debt burden through the capital market, potentially increasing the depth and breadth of the capital market. She expressed the interim setup's desire to float government securities on the Pakistan Stock Exchange (PSX) to stretch their maturity and enable common citizens to invest in them.
The caretaker government's comprehensive approach aims to stabilize the economy, stimulate growth, and address critical issues affecting various sectors.
Published in Times of Karachi,
09 Sep, 2023
Written By Web Desk
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