KARACHI: Federal Minister for Finance and Revenue Muhammad Aurangzeb on Tuesday emphasized on corporate agriculture in collaboration with Special Investment Facilitation Council (SIFC) to accelerate economic growth.
Addressing the executive committee of the Pakistan Banks Association (PBA) here at the Islamic Chamber of Commerce building, the finance minister highlighted key initiatives and discussed the country’s macroeconomic situation.
Muhammad Aurangzeb said it was encouraging to see the private sector taking proactive steps to develop financial and technological infrastructure.
The minister said that there were extensive talks on the macro aspect, but as far as external financing is concerned, the government is comfortable with the current situation. “We are proceeding with the draft of the IMF resolution,” he added.
The minister also emphasized the importance of public-private partnerships, especially with HBL and NBP, saying, “We need to create capacity and move forward”.
The Minister emphasized that we want to go back to the international capital markets and ensure that we achieve a B- rating to achieve the minimum rating for any financial sector to enter the international capital markets, as we are currently rated CCC.
He continued to discuss the macroeconomic situation. “We are aware of the current challenges, but with the main approval of the IMF, we believe that the situation is manageable. It is essential to continue to focus on agriculture and support initiatives such as SIFC,” said the minister.
He further noted, “We call on the private sector to take responsibility and lead these transformations.” He said there is a need to create capacity to get cash flow lending moving and moving forward.
“The agriculture sector and the IT industry, especially freelancers, need proper allocation of funds. It’s time for private banks to step up finance and fund allocation,” he added.
Addressing the power sector, Muhammad Aurangzeb noted that the developing sector was facing problems of additional taxation, high cost of power and high interest rates. Although competitive energy tariffs are not currently available, progress can still be made.
He said the large manufacturing sector is also facing challenges but they are working to provide support where possible.
The minister concluded by calling on the banks to focus on agriculture, finance and data collection. The meeting concluded with the announcement that next week the International Finance Corporation (IFC) will expect banks to share their updates and initiatives. The PBA meeting was attended by all senior members including presidents of all leading banks of Pakistan along with PBA Chairman and Bank of Punjab President Zafar Masood, FBR Chairman, Foreign Secretary Ali Pervez and also Director Finance. Minister Shehryar.
