Finance Minister Sees Potential for Interest Rate Cut

Federal Finance Minister Muhammad Aurangzeb says that in his opinion, there is scope for a reduction in interest rates, but the decision in this regard is to be taken by the State Bank.

Federal Finance Minister Muhammad Aurangzeb said that due to government measures, the economy is moving towards stability, and the reason for this is that obstacles to economic stability have been removed.

He said that they are taking local and international investors along. In the fiscal year ending June 30, multinationals’ profits of $2.3 billion have gone abroad. The problems of foreign investors’ profits going abroad and LC not being opened have ended.

The finance minister said that banks should work with investors to revive ailing industrial units.

The finance minister said that the additional power of the FBR is related to sales tax, not income tax. Today, we met with the governor of the state bank and the presidents of commercial banks. We asked what role banks can play in economic stability. Banks play an important role in economic development.

He said that the government has reduced its spending and is also reducing circular debt.

Muhammad Aurangzeb said that banks should have a role in privatization, and banks can play an important role in reactivating sick industries.

In response to a question, the Finance Minister said that as much relief as there was space, tax returns have been simplified for the convenience of salaried employees; a very simple form for salaried employees has been uploaded on the FBR website, and this form will also be given to small traders and SMEs.

He said that no finance minister wants the growth rate to increase immediately, but then the foreign exchange reserves will go to a low level after pressure.