How can country run when tax to GDP ratio is 9 percent? Aurangzeb

ISLAMABAD (APP) - Finance Minister Muhammad Aurangzeb on Tuesday said that that the foreign reserve was stable at US$15 billion and it would increase further, adding that the current tax to Gross Domestic Product (GDP) ratio was 9% which would be increased to 13%.

Addressing a press conference along with Federal Minister for Information and Broadcasting Attaullah Tarar and Federal Minister for Law, Azam Nazeer Tarar, he said that the country’s economic indicators were going in the right direction and had increased the confidence of foreign investors in the economic governance of Pakistan. "Investors from the European Union and America, including Saudi Arabia, have reached Pakistan. They are meeting us and the talks were going on," the minister added.

Aurangzeb said that the recent visit of a delegation of Saudi’s investors to Pakistan was also a part of pave way for this economic cooperation. The minister said that export-led growth, Foreign Direct Investment (FDI) and excess to capital were the priority of the government.

The senator said that due to the prudent economic policies of the government and the progress in the economic indicators, foreign investors were ready to invest in Pakistan.

"The Federal Board of Revenue (FBR) has increased the record federal revenue in current fiscal year. Inflation has gone down and reached at 17 percent."

He said that the shares of Pakistan Stock Exchange were increasing and PSX was continuously balancing. The minister said that the International Monetary Fund (MF) team was coming to Pakistan soon to hold talks with the government for an upcoming large IMF program for Pakistan.

Aurangzeb said that the pension in the country was a huge burden on the economy, which needed to be restructured and the retirement age would be increased to 65 years.

The minister said that the expenditure was being reduced in the country, in which State Owned Enterprises (SOEs) would be given priority so that the expenses of the government would be reduced. He said that the process of privatization would also continue to reduce the burden of expenses from the government.

The minister said that the private sector was vital in the country’s economy and now the role of the private sector in the economy would be stronger. He said that short, medium and long-term strategies were being worked on for Macro Economic Stability, which would further develop the country’s economy.

He said that the government was working on structural economic reforms and was busy to implement them. Aurangzeb said that in the last two weeks, three high-level delegations had been exchanged between Saudi Arabia and Pakistan.