ISLAMABAD: Azerbaijan has approved an investment of up to $3 billion in different sectors of Pakistan, aiming to bolster the South Asian nation’s economy.
At a recent cabinet meeting, Prime Minister Shehbaz Sharif announced that the Central Asian state had agreed to sign memoranda of understanding (MoUs) for investments ranging from $2 billion to $3 billion. This significant influx of capital is expected to further strengthen Pakistan’s economic landscape.
During the meeting, the prime minister also highlighted his recent visit to Saudi Arabia, following which a delegation was dispatched to Riyadh to discuss economic cooperation in various productive sectors, including solar energy, mines and minerals, and information technology. He emphasized the increasing demand for IT professionals in Saudi Arabia and the Gulf, noting that Pakistan could meet this demand with minimal effort.
The Prime Minister directed the Ministry of Information Technology and Telecommunication to present a comprehensive strategy for producing a highly skilled IT workforce that meets international standards. He also stressed the importance of swift action in implementing the MoUs inked with Saudi Arabia.
Sharif expressed satisfaction with the State Bank of Pakistan’s recent 250-basis-point reduction in the policy rate, bringing it down to 15%. He noted that this reduction reflected the effectiveness of the government’s measures for economic stability. The premier observed that the lower policy rate would stimulate investment in industrial, commercial, agricultural, export, and trading sectors.
In recent months, a significant decline in inflation has led the State Bank to repeatedly slash the policy rate, encouraging investments in productive sectors. This, in turn, has led to job creation, enhanced production, and increased exports.
Sharif further stated that the lower policy rate not only reduced the government’s debt burden by Rs1.3 trillion but also created fiscal space by lowering the cost of borrowing. He expressed confidence that the economy would further strengthen as a result of the prudent economic and financial policies adopted by the government.
Addressing the challenges of tax collection and enforcement, the Prime Minister noted that those who paid taxes were the true patriots and ambassadors of the country. He directed the Federal Board of Revenue (FBR) to accord them the highest respect. However, he warned that tax evaders and the FBR officials who facilitated such practices would be dealt with sternly.
Sharif also informed the cabinet about an upcoming “winter package” to provide relief to electricity consumers. He appreciated the hard work of the minister and secretary for power in structuring the package and commended the efforts of the finance ministry.
Lastly, the Prime Minister highlighted the government’s ongoing and planned measures to provide relief to the common man, strengthen the economy, and create jobs. He announced plans to chair a meeting to address challenges related to the International Monetary Fund’s (IMF) requirements, particularly tax receipts and revenues.
He emphasized that while the economic challenges confronting Pakistan are formidable, he has great confidence in the nation’s resilience and strength to overcome them. He assured the cabinet that the nation would prosper, even if it required temporary sacrifices.
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