Govt giving subsidies to improve economy: finance advisor
ISLAMABAD: Adviser to Prime Minister on Finance Abdul Hafeez Shaikh Karachi on Saturday said the government was giving subsidies to industrialists and exporters to improve the economy.
“The International Monetary Fund (IMF) has also expressed confidence on the economic reforms agenda of the government,” he said while addressing a ceremony of Overseas Investors Chamber of Commerce and Industry.
The adviser said the tax system had improved as a result of reforms being introduced in the FBR. He said difficult economic situation had been overcome.
“The government did not borrow any money from the State Bank of Pakistan over the last four months. While, the stock market has also witnessed a significant improvement,” he said.
Abdul Hafeez Shaikh said the current account deficit had reduced whilst investors had also been giving subsidy of 200 billion rupees.
He said 250 rupees were also being spent in the energy sector.
On Nov 11, Dr Abdul Hafeez Sheikh had said the government had decided to give 300 billion rupees subsidised loan for industrialists to increase exports.
“The government has decided to give 200 billion more rupees to exporters as loan to increase exports in the country. The interest rates would be lowered for them and the difference would be paid by the government on loan from this amount,” Abdul Hafeez Sheikh said while addressing a press conference in Islamabad. He was flanked by Federal Minister for Economic Affairs Muhammad Hammad Azhar and Special Assistant to Prime Minister on Information and Broadcasting Dr Firdous Ashiq Awan.
He had said the loan provided by the central bank was also being increased by 100 billion rupees. “This way the exporters could be able to get loan from Rs300 billion.”
The advisor to the PM had said the loan was being provided so that more jobs were created in the country through increasing production in the factories for exports.