ISLAMABAD: Finance Minister Shaukat Tarin said on Monday that Prime Minister Imran Khan’s visit to China is “extremely crucial” for Pakistan’s economy and politics.
Islamabad is using the visit, which is not technically a bilateral one, to discuss a number of important bilateral matters, including the China-Pakistan Economic Corridor (CPEC).
Tarin said the government would seek assistance from China and suggest that Beijing bring industry to Pakistan in a video message.
“We respectfully request that you migrate your business to Pakistan, as our Special Economic Zones (SEZs) are now operational. It will be a win-win situation for both countries if you bring your enterprise here.”
Apart from developing industrial prospects, Tarin claimed that the prime minister would ask China to assist the federal government’s ‘Agriculture Transformation Plan,’ as Pakistan’s economic growth is dependent on agricultural productivity.
Tarin claimed that the IMF’s long-awaited acceptance of the sixth loan tranche of Pakistan’s programme showed the fund’s support for the PTI-led government’s economic policies and would bring much-needed stability to the country’s economy and currency.
The IMF clearance comes only days after the PTI administration narrowly passed the critical State Bank of Pakistan (Amendment) Bill through the opposition-controlled Senate.
Personal income tax measures, as well as harmonisation of sales tax between provinces and the federation, are “important,” according to the IMF’s press release following the board meeting.
Furthermore, boosting electricity costs was still one of the requirements for staying in the IMF programme.
The IMF has also warned of increased risks to Pakistan’s economy from the country’s expanding current account deficit, which it expects to reach 4% of GDP this fiscal year. At the end of the year, inflation is expected to be in the double digits.
