Federal Minister for Finance Muhammad Aurangzeb has described Pakistan’s external deficit as “manageable” and revealed that the National Finance Commission (NFC) will soon begin discussions on the resource distribution formula.
During a press conference on Monday, the minister addressed various economic issues, including proposed constitutional amendments, such as the 27th Amendment, which aims to revise the NFC Award’s resource distribution formula, and potential changes to the 18th Amendment to transfer education and population portfolios from the provinces to the Centre.
However, Aurangzeb refrained from giving a direct response, emphasizing that such matters should be discussed within the NFC framework.
Aurangzeb stressed that the government is focused on implementing structural reforms to avoid economic boom-bust cycles and ensure sustained growth. He underscored that without these reforms, the country’s economic agenda could not reach its full potential.
When questioned about the possibility of needing another bailout from the International Monetary Fund (IMF) due to the growing trade deficit, the finance minister pointed out the government’s commitment to export-led growth. He mentioned that, while exports grew at a modest 8-9%, remittances had performed well. The minister projected the Current Account Deficit (CAD) to be around 0.5% of GDP, which he deemed manageable.
Additionally, Federal Secretary of Finance Imdad Ullah Bosal stated that the Direct Contribution (DC) for pensions of the armed forces could be implemented next year.
He also highlighted that 8,419 new civilian officials had been enrolled in the Direct Contribution Scheme, alongside several parametric reforms in pension systems, including changes to early retirement penalties and the option for pensioners to choose between pension or salary.
Discover more from Brackly News
Subscribe to get the latest posts sent to your email.
